2007-03-30 00:26:39 · 13 answers · asked by Anonymous in Business & Finance ➔ Credit
If possible pay your bill in full every month. This will help you avoid interest and build your credit score quickly.
2007-03-30 00:31:05 · answer #1 · answered by Matt 4 · 3⤊ 0⤋
if you can afford to pay more than the amount due every time.
But paying it off completely doesnt help your credit. if you are making payments greater than the amount due then your in good shape.
Now, if youve had the card for two years and came across a mass amount of money paying the card off would be a great idea.
2007-03-30 07:31:41 · answer #2 · answered by pegasis 5 · 1⤊ 0⤋
For you, it's better to pay the whole amount. For the credit company, they love it if you only pay the due amount because then they actually get more money out of you for the interest charges. Don't forget, whatever balance you have will cost you more if you don't pay it off.
2007-03-30 07:36:09 · answer #3 · answered by bostonchick 5 · 1⤊ 0⤋
If you pay the whole amount, you won't incur and interest charge. If you pay the minimum amount due, interest will be added to your next bill that will amount to almost as much as you just paid them.
A $3000 credit card bill at 18% interest will take 7 years to pay off if you only pay the minimum payment plus, you'll have paid about $2000 in interest during that time.
It's WAY better to pay the entire amount due.
2007-03-30 07:32:05 · answer #4 · answered by Faye H 6 · 5⤊ 0⤋
If you don't have other debts with higher interest rate, then it works in your favor to pay the whole amount on your credit card. Otherwise, you will end up paying interest on the remaining amount of credit owing, and credit card interest rates are typically quite high compared to home loans and most loans.
2007-03-30 07:38:02 · answer #5 · answered by Answer 1 · 1⤊ 0⤋
Better to pay the full amount. The interest rate is too high on charge cards. Plus it will take you forever to pay it off, if you only pay what they say is due.
2007-03-30 07:30:59 · answer #6 · answered by PEGGY S 7 · 3⤊ 0⤋
Credit cards charge extremely high interest. It would have been considered loan sharking 20 years ago. You should have exactly 0 money outstanding on a credit card account. Even an overdraft on your bank account is better than an outstanding credit card debt.
2007-03-30 07:37:36 · answer #7 · answered by U-98 6 · 1⤊ 0⤋
Pay it off for 2 reasons: 1. You don't want to rack up interest on what's left to pay. and 2. It has a direct affect on your utilization ratio (how much you owe vs. your total available credit), which counts as 30% of your score
One more reason....You won't have to worry about forgetting to make a payment, becuase it would be paid off!
2007-03-30 08:52:51 · answer #8 · answered by Anonymous · 1⤊ 0⤋
dont pay the whole amount,
what you do is you check what your due amount is and you pay a little more than that.
it helps you build up a credit record.
2007-03-30 07:36:36 · answer #9 · answered by Anonymous · 0⤊ 1⤋
Paying the due amount gives you more freedom arranging your financial matters
2007-03-30 07:31:43 · answer #10 · answered by ELBASH 2 · 0⤊ 1⤋