Paying my credit card payment in full every month?

Question

Okay, so I'm 19, I just got a credit card to build my credit, I've been searching around and some people say you should pay your cc payment in full every month and other say you should pay I think 40% above the minimum payment because if you pay in full the banks aren't making interest off you, which means you're not getting reported, that you should carry a balance for 3-6 months. I called my cc company and they told me as well that I should pay in full every month. I think they lady was new she had to get off the phone to ask someone else.

Can someone please help me, I'm trying to build my credit as fast as possible.


Please answers from people with cc's and good credit, ty

Answer 1

pay in full

Answer 2

As long as you're paying after the statement is generated with a balance, it will report the balance each month. Your credit score is based on a few different things, and paying your bill on time is only one of them. They also look at your balance/limit ratio. If your balance is under 50% of your available credit, then that's good too. Length of time that the account is open is a factor also, so sometimes you just have to be patient and pay your bill on time. You might want to consider this: Max your card out, make the minimum payment or just a little above for 2 or 3 months, to make sure that it reports, and then pay it off. That looks really good and could get you some good points, but be careful and put the money away until it's time to pay off the card. Don't spend it!

Answer 3

Pay in full. Lenders are concerned with how you manage your credit. As you're making at least the minimum payment each month, you're in good with them, so why not just pay off the full balance to avoid paying interest charges? Carrying credit card balances is about the dumbest thing you can do from a personal finance perspective. Pay in full for a few months and then get a copy of your credit report. You'll see that your payments are being reported to the agencies.

Answer 4

Pay in full every month - but DO use the card. Using the card and paying on time very month is what builds your credit. Carrying a balance - especially at such a young age - can send a signal that you tend to get in over your head with more than you can afford. Plus, why pay the interest you accrue by not paying in full? Wouldn't you rather keep the interwst than pay it to the cc company?

(my credit score=812, I have never carried a balance for more than one month)

Answer 5

OK First of all, if you use your credit card regularly the Credit card company will make money off you , never fear. Even if you never pay a dime of interest they are collecting fees from all the merchants that are accepting your payments. The more charges the more fees.
What you want to do is pay off your credit card in full every month and NEVER be late. Not even one day. You also want to be careful and not max out your card. Your credit card company is going to report to the credit bureau what your ending statement balance is. If you max out your credit every month, it will look like you keep a high balance, even if you pay it off every month. Just keep your ending statement balance around 50%. Your balance is reported every month. What is not reported is weather the balance is revolved or paid every month. ( Get a copy of your credit report and you can see what is reported )
Lenders are most concerned about how you handle your account. They don't want to see lates, maxed out credit lines or any kind of defaults. Time is the only thing that can build your credit, lenders like History. Good Luck

Answer 6

There's nothing wrong at all with paying the full amount every month, I do it myself. There's also nothing wrong with paying the minimum, or more than the minimum amount every month, either. The main point is that you pay, and pay on time.

I pay the full amount every month because I don't see a reason why I should pay extra money (interest/finance charges) for something I know I'm able to pay off in full. By paying it off in full, you keep your debt to utilization ratio (which makes up 30% of your score) at it's lowest. As long as you show activity every month by charging and paying off there's hardly ever a penalty in that. If you have a credit card that frowns down on that, then you should reconsider doing business with them in the first place.

Answer 7

Pay in Full. dont pay interest to make your credit history better. there are other ways to do it.

after few months apply for a credit card with 0% APR . citibank and chase usually do this. they also give you a promotional offer like $100 if you get accepted... get one of those cards.you may get 2 diff kind of offers with these cards:

1. if they give you a 0% apr on purchases then use it(wisely even thou it has no interest). make minimum payment on that card . the remaining balance unpaid will not get interest since its 0%. pay it of in full after the promotional period is over. that way you carry a balance but not shelling out money as interest.

2. 0% apr on balance transfers (BT). I like this one better. banks like citibank and chase let you get money as a check to the amount of your credit if you dont have any other credit to transfer to this card. eg: if your credit line is $3000 they can send you a check in your name and treat it like BT. usually there is no charge for this BT with the promo offer. I would ask them to send a check for $2900 and deposit that money in a high interest savings bank and get interest on their money while building credit. make the minimum payment in your account every month and don't use it for purchasing anything coz they make charge you the purchase interest on that.

also when ever you make minimum payments on your account with 0% BT make sure your available credit is atleast $50 - $100 just so that if there is a charge by mistake or you charged your card for a coffee the credit doesnt make you go over the limit and incur fees. after few months when your available credit if more than $200 or so (coz you must have paid min balance for all those months) you can ask them to send a check in your name again for the available credit minus $100. you can do this until your offer expires and then take the money from savings and pay the remaining balance in full.


NEVER CLOSE A CREDIT ACCOUNT. you want account with long standing good history.

Answer 8

I did the EXACT same thing when I was your age.

I thought I had PERFECT credit. Image my surprise when I found out that I had none at all. You have to actually have credit payments to establish payments. Paying in full does not count.

I know it doesn't sound right, but that is how they track that you can manage bills month to month.

Do your charges and then pay it in three months, that is enough to put you in the positive w/o paying to much interest.

If you are trying to build fast do this with several cards. Keep the purchasees relatively small, because the amount of money you owe really has no importance. just that you make monthly payments on time.

Answer 9

Paying in full will not bill your credit. The best way to build credit would be to pay more than the minimum payment every month.
You can also open an account with a credit union, it will help you build you credit really fast.

Answer 10

definitely pay in full - you could try getting a loan for something (a car shouldn't be as bad) and paying the balance in full every month

Answer 11

Pay in full. Your account will still be reported to the credit agencies, but you won't pay interest.