How to use a credit card?

Question

Say I have $500 that needs to be paid on a credit card. Once the bill comes in the mail does it help my credit score to pay off the whole balance rather than just paying off the minimum payment on time?

Answer 1

If you have no Credit, it is better off paying it in payments rather then pay it off all at once. You will build your credit faster by doing payments. I hope this helps

Answer 2

Hi,

You want to create a payment history. You don't necessarily want to pay off the whole balance at once since creditors are looking at HOW you handle credit.

You want to pay more than the monthly minimum, otherwise you will be paying on that balance for the rest of your life. You want to carry approximately a balance of 20-30% of your credit limit on your account at any given time. On a credit card with a $500 limit, you want your monthly balance to be around $100-150.

Make certain that you can afford the purchases that you are making on you account. Just don't abuse CREDIT, USE it wisely. If you can afford the item you purchase, then you are being financial responsible and can pay off balances on those ocassions when it's necessary to use you CREDIT when you NEED to stretch you budget.

See my profile.

Answer 3

Pay off the whole balance will be best for your credit score. Just paying the minimum required payment will just cost you a lot more in finance charges. Then when -or if- you fall behind on payments, thats bad for your credit rating.

Answer 4

You dont use a credit card. A credit card uses you.
cut it up and cancel the cards. Dont obsess over your credit score.
banks spend millions each yr brainwashing people into thinking you need credit to get ahead in todays world. Thats a load of crap. Today is no different than yesterday. Save your money and pay cash. Dont buy things you cant afford.

You spend more using a credit card than you do with cash. Mc donalds did a study when they started taking credit cards. Before people spend and average of $4.75 after they started taking credit cards the average went to $7.00.

"would you like a hot apple pie with that?"
No Thanks!

No credit is not the same as bad credit.
You can get a home loan with no credit. Its called manual underwritting. The way people used to get home loans before this stupid fico score.

Answer 5

It helps your credit score to pay off the entire balance on time.

Answer 6

Yes, paying your balance in full as often as possible will give you an excellent credit rating. If you are unable to do so, make sure that you pay AT LEAST the minumum payment, if not more each month.

Answer 7

Paying off the balance always helps. The only time it would hurt your credit is if you're late, even by one day.

Answer 8

Not really, but it certainly helps your financial situation. ALWAYS pay off your cards every month. Why would you want to pay a credit card comapny interest just to up your credit score a few points?!?!?!

Answer 9

In the case of credit cards, your credit score is calculated by taking a ratio of the credit owed to credit available.

For example, if you have 5,000 dollars in credit. And you owe 4,000, your credit score would fall, because you only have 1000 in available credit.

However, if you have 5,000 in credit, and owe only 200 dollars, your credit score will increase because you have a 4800 in available credit.


Keep in mind that your overall credit score is affected by other factors. Also, if you have lets say four credit cards, each with a 5,000 credit. It means you have a total of 20,000 in credit available. Just keep in mind that everytime someone checks your credit (if you open credit accounts), it causes your credit score to lower somewhat.

Answer 10

it sure helps your wallet and is the only way to use Credit Cards.
Some say however, the CC companies like those that leave a unpaid balance each month as that is how they make the big bucks.
At any rate it surely is not hurting your credit score.