I pay my full balance on my credit card each month. I have heard that is bad for your credit score. I have about $300 on this statement with $10 min payment. How much should I pay in this case?
2007-03-30 16:42:08 · 9 answers · asked by sofun 4 in Business & Finance ➔ Credit
A balance on your card is NOT necessary. What you are proving is that you pay your bills. If you pay off the credit card every month, you are proving that you are reliable. That is what credit is. My credit score at the top of the scale, and that is exactly what I do.
I use my credit card to pay all my monthly expenses, and then write one check at the end of the month. The credit card I use also gets me air miles, so I can get some free trips out of it.
The only other thing you can do to raise your credit score would be to take out a bank loan. You should have the loan for at least 6 months before you pay it off.
2007-03-30 16:49:48 · answer #1 · answered by Bare B 6 · 1⤊ 0⤋
Pay your bill off every month - having a balance does not improve your credit score.
The FICO algorithm is highly secret, because there are so many variables - however, the length of time you've had a card is important, and the only thing that will help is time.
Why are you seeking a good credit report? Are you planning on purchasing a major item (car, house)? If so, don't apply for any credit for 12 months before that purchase.
Opening a loan, paying it off in 6 months, and having that on your "record" really doesn't improve your credit score, because once you pay it off it ages, and becomes obsolete within a year (for scoring purposes).
2007-03-30 16:57:05 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It is good to show a positive payment history, so you could pay the $300 off in three payments instead of one. Also, you should use your card/s every so often to keep them active. You can buy something small like a new dress and pay it off in two payments. You also want to keep the ratio of outstanding debt to available credit low. If your card has a $1000 limit, then keep your balance under $500. That will also help improve your credit score.
2007-03-30 16:48:00 · answer #3 · answered by Erika B 3 · 0⤊ 0⤋
You heard right - the lenders like to see that you can make your payments on time.
Never pay the minimum payment if you can help it. It this case a payment of $25 or more would be fine. The amount of interest will be only a few dollars, even with a high interest rate.
One suggeestion to get or maintain a high credit score, only use up to 75 percent of your credit line.
2007-03-31 04:58:53 · answer #4 · answered by Chef dad 3 · 0⤊ 1⤋
actual no longer. How can paying your charges damage your credit. if you're searching to advance credit get a small personal loan even once you may want to shelter it with the same quantity of money. in the different case only pay all charges in finished and on time it extremely is staggering decision.
2016-10-17 22:22:19 · answer #5 · answered by Anonymous · 0⤊ 0⤋
No that is not true. The only thing that is bad for your credit score is not paying or paying late if the company reports it to the credit bureau.
2007-03-30 17:21:16 · answer #6 · answered by longjon 1 · 1⤊ 0⤋
You always want to pay them down as much as possible. It's ok to have 50 bucks sittin' on it jus tto show that you pay your bills on time, but you don't want to EVER use more than 60% of your available credit and let it sit like that. That will actually hurt your credit.
Good Luck
2007-03-30 16:44:43 · answer #7 · answered by Love Answers 2 · 1⤊ 0⤋
Pay it all, don't pay the ridiculous interest rate.
2007-03-30 16:50:02 · answer #8 · answered by Nelson_DeVon 7 · 0⤊ 0⤋
pay 90%
2007-03-30 16:45:28 · answer #9 · answered by Chrys 7 · 0⤊ 0⤋