Is it better to pay in full or pay a bit less then what you owe on a credit card?

Question

I thought it's better to pay in full but this is what i copied and pasted from another question that I answered:

"""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"""

so it hurts us to pay in full? is it better to pay the minimum? does my credit score lower if i pay in full? am i not getting his answer?????

THANKS GUYS!!!

Answer 1

If you do not pay more than the minimum the interest rate they put on your bill every month will never go away and neither will your bill. Example: We have a card that wants $15.00 a month minimum and they charge lets say $11.46 every month for interest charges and if I only paid the $15.00 and no more than a bill of lets say $500.00 will take a few years to pay off. I pay over always. If the payment is $15 and the Interest charge is $11.46, thats equals $26.46, so I would send $40 or $50 dollars. I hope that answers your question. NEVER pay under the minimum and ALWAYS pay the interest charge for that month or it will never go down.

Answer 2

The poster you quoted is WRONG! Credit cards do not report whether you pay the minimum or full balance. They just report on time or not.

Carrying a balance is a bad idea. First, you pay interest. Second, you end up in debt.

Part of your credit score is based on the debt to available credit limit ratio. If you carry a balance, especially more than 50%, you really hurt your score. Paying in full every month gives you a better ratio -- thus a bette score.

Answer 3

It's a good idea to keep at least a little balance if you are looking to restore and build up your credit, but it depends on your interest rate. If you have a high balance on several different high interest rate cards, you are actually losing money by not paying off the debt immediately. However if you have a relatively low interest rate and better yet, a card with a cash back rewards program, keeping a balance on a couple of cards can actually be beneficial in raising your FICO score. Another trick is if you are going to keep a small and manageable balance on the cards, always, always pay more than the minimum each month and watch your credit rating soar. I know, I have done this, and my credit has bounced back from quite horrible in a few years to a 756-763 FICO score.

Answer 4

It is better to pay off the card in full reason being why would you want to accululate a substantial amount of interest and finance charges on any amount. This will not hurt your credit if you were to pay in full if anything it will raise your score because this is saying to the creditor you are worthy of credit. No the creditors do not want people to pay in full because they will not be making any money you have to out smart them. Or you can pay the minimum plus the finance charges they have added on each billing cycle this way you will not be allowing the finance charges to roll over into the next month billing cycle and be charged finance charges on top of finance chargres that will continue to raise your balance on a small amount you will end up paying more in fees than you charged. This is the corrrect way to manage credit card debt. FROM ONE WHO KNOW

Answer 5

I would rather not pay interest. It is better that you pay your bill every month in full. It shows you are responsible and don't charge more than you can pay. A credit card is for convenience so as not to have to carry cash or try to use checks. It is not intended to finance unneeded purchases. That is how people get in trouble by overbuying and paying interest.

Answer 6

Pay a little more than the minimum due. You want to show that you can pay your bills on time. I know you want to pay them off in full but you want to show that you can make monthly payments on time. If you were financing a house you wouldn't pay in full. They figure you won't pay in full so they want to see a history of monthly payments. Keep your balances way low. Keep using your credit card and pay your bill on time.

Answer 7

you want to establish payment history send 50.00 to 75.00