i pay my credit card in full every month. But that means that the credit card company is not making any money off of me right? I mean since I pay in full, I don't have to pay any APR.
Isn't that the point from the credit card's company point of view? to make money off the customer through APR?
Well since I NEVER pay any APR, am I a "bad customer" in their eyes?
2007-10-03 07:37:00 · 9 answers · asked by chapped lips 5 in Business & Finance ➔ Credit
No it doesn't make your credit look bad, it's good that you pay it off so your credit score should be pretty good.
Even though they "don't" make money off of you, they already profited from the transactions you made.
When you buy somthing from a store, the merchant has to pay a very small percetage of the sale to Visa, or MasterCard whatever.
Just pay your bills on time, and don't worry about if the credit cards are making money...I don't care and you shouldn't either.
2007-10-03 07:46:10 · answer #1 · answered by Gary 4 · 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!
2016-05-19 23:35:41 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It just shows potential companies you borrow from that you dont really have credit established if you pay in full every month. I would put like $200.00 on a credit card and pay the minimum every month until its paid so the credit card company can report that to the credit reporting agencies such as experian etc.
2007-10-03 08:25:24 · answer #3 · answered by ♥Kempa♥ 4 · 0⤊ 0⤋
No is does not make you look bad. Credit rating is not a measure of how much money creditors make from you, it's a measure of how much of a risk you are to other lenders. If you have a history of being responsible with debt and paying back loans as agreed, you are not a risky customer and you will have a good credit rating.
Unfortunately, your score is not as simple as this. There are a lot of things that go into it. One of the biggest one is debt to credit ratio. If you have a lot of credit, but little debt, you have a higher score. A person with the same debt, yet lower limits, will have a lower score.
2007-10-03 08:07:21 · answer #4 · answered by Jay P 7 · 1⤊ 1⤋
No, you still look OK. The entire premise of "credit" is that you're promising to pay back the money that they loaned to you. The quicker you pay it back, the better of a customer you are. Paying your entire balance off early is always a good thing, and your credit report should reflect that. Good luck!
2007-10-03 07:52:06 · answer #5 · answered by The Green Bastard 2 · 0⤊ 0⤋
I did this for years. They raised my credit limit and gave me an offer of 0% or near 0% for several months.
2007-10-03 08:37:20 · answer #6 · answered by StephenWeinstein 7 · 0⤊ 0⤋
What matters is what they put on your credit report, which should say, "paid as agreed."
2007-10-03 07:42:50 · answer #7 · answered by smartypants909 7 · 0⤊ 0⤋
no you are not a bad customer. they do make $$ in alot of way.
2007-10-03 09:12:11 · answer #8 · answered by helpme 2 · 0⤊ 0⤋
paying as agreed it was matters no lates
2007-10-03 07:51:01 · answer #9 · answered by Crazy cat lady >^ ^< 4 · 0⤊ 0⤋