I have heard a few different theories regarding building your credit using a credit card...I have paid off my credit card IN FULL every time the bill is due. Some people tell me that if I just pay more then the minimum payment, but less than the full amount, your credit looks better and builds faster. Other people tell me to pay in full no matter what and if you don't pay in full every month your credit looks really bad.
Any creditors out there that can offer me some advice?
2007-06-29 04:53:37 · 11 answers · asked by chelsea_laforge 2 in Business & Finance ➔ Credit
NO WAY.... Your credit will look the same if you never had a delay.... Also if you apply for a loan and you have an outstanding balance to your credit card your credit ability is going to be somehow decreased. Maybe this think that you've been told is that if you pay your credit card fully then your are not that good of a customer (!) because you do not pay interest... but no way for your credit.....
2007-06-29 05:05:46 · answer #1 · answered by Phitzi 2 · 0⤊ 0⤋
Im not a creditor but its better to pay just more than your minimum amount but not the whole thing. Some credit cards have fees they charge you if you pay the whole thing off. Did you know that?
You want your credit report to show that you are using some of the credit you have available. Its a good thing!
So pay maybe 20% of your total balance if the minimum amout due is 15% and never pay the whole balance off, leave maybe $100 unpaid on a $1000 credit line.
Always pay before the due date!!!! You never want to be late on paying your credit card bill. So set it up with your bank to do automatic payments if you are having trouble remembering to pay your bill every single month on time.
If you do these things, in a few months your credit card company will probably raise your credit line and thats really fun!
2007-06-29 05:09:53 · answer #2 · answered by pomeranianstudservice 1 · 0⤊ 1⤋
The thing is some cards do not give you the option. An example of that would be some American Express Cards. Before you make a partial payment, check the terms of your card. If you can you should always pay it off because it will keep you out of trouble. Always live within your means and use credit card balances for emergencies and unforseen expenses which you pay off a.s.a.p. The stress of paying now will be a lot less then if you try to pay later, believe me. That is how people get in over their heads.
2007-06-29 05:32:43 · answer #3 · answered by Garden Gal 1 · 0⤊ 0⤋
From a financial standpoint, it is smarter to pay it in full to avoid interest rates. Paying an amount less than the balance does not hurt your credit rating so long as the payment is on time.
2007-06-29 05:05:48 · answer #4 · answered by Ara57 7 · 0⤊ 0⤋
Having $1500 of recent charges on your credit report is not a bad thing and will not result in a low credit score. You do not need $0's to show on your credit report to have a good score. Your credit score is based mostly on factors such as whether your payments were late, more so than on how much credit is in use. And $1500 is not too much to have in use. Finally, $1500 per month is $18,000 per year. Excluding housing, taxes, insurance, car payments, etc., you should not be spending that much per year.
2016-04-01 10:27:59 · answer #5 · answered by Anonymous · 0⤊ 0⤋
What if your credit card balance is way too high like owing them $2,356 and you don't bring home that much from your paycheck? How are you going to pay them off in full? The minimum or more then the minimum is better then not paying them at all.
2007-06-29 07:01:12 · answer #6 · answered by Anonymous · 1⤊ 0⤋
People who carry balances on the cards are the people who make it where I get to use credit cards for free. So carry a balance.
However, i always pay mine off every month.
2007-06-29 05:05:00 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Always pay in full. Carrying a balance actually lowers your FICO score. You can read a description of how FICO is calculated in the recent article at: http://www.uthunk.com/
While you're paying in full each month, you might as well earn maximal rewards for your normal spending. To calculate which card (or cards) will pay you the most for your normal spending, you can use this rewards calculator:
http://www.creditcardtuneup.com/
2007-06-29 10:40:26 · answer #8 · answered by moviegoer_j 3 · 0⤊ 0⤋
Pay the whole thing every month. Your available credit is important to your credit rating. I have over $60,000 available among my 11 credit cards that I rarely use. On the rare occasion I do use one, I pay it off in full.
My FICO is 781.
2007-06-29 06:12:13 · answer #9 · answered by Anonymous · 0⤊ 0⤋
well my bank told me when I get the bill in to pay in full..it's your option..seems to me you are already doing that..keep going...at the end of the day if you keep paying it off in full every month,they will eventually raise your credit limit..that's the whole idea of getting increased limits..AND your credit rating goes up..
2007-06-29 05:14:52 · answer #10 · answered by Anonymous · 0⤊ 0⤋