I'm just doing this because I'm going to be making a major purchase and I don't want to go over half of my credit line. Is this a good idea by paying extra on the credit card and then making that purchase?
2007-10-12 12:42:43 · 8 answers · asked by Anonymous in Business & Finance ➔ Credit
Yeah it wont make your credit better. But if you are above 25-30% of what your availiable balance on your credit card is, your score will start to go down.
Still 50% is a bit high. You really want to get your revolving accounts down to about 25% to help your credit score. You want to keep something on your account. If they are paid off the credit card company isnt going to report it. They pay to report. They dont pay to report nothing. You want to keep something on there, just keep it below 25%
2007-10-12 12:46:50 · answer #1 · answered by financing_loans 6 · 1⤊ 0⤋
I don't think it will make a difference if you pay 300$ and then immediately charge something. Just make sure not to go over your credit limit and always make your payments on time- this will improve your credit score over time.
You are smart for not wanting to use up all of your available credit because that can negatively affect your credit score.
If you have 300$ why not just purchase the item you want without charging it?
2007-10-12 19:51:35 · answer #2 · answered by MJ 3 · 0⤊ 0⤋
Sorry but the third answer is incorrect according to the FICO model. The score improvements come at 30%, 50% and if your card is maxed as soon as you get it below the limit.
There is no more improvement in score after 30% unless you PIF.
keep making the extra payment so you can get to 30%.
2007-10-12 19:56:35 · answer #3 · answered by Ted 2 · 0⤊ 0⤋
It depends when you want to look at your credit score. If you make a purchase and then pay the balance in full when it is due, it will not affect your credit score.
2007-10-12 19:53:31 · answer #4 · answered by harshdeshpande 2 · 0⤊ 0⤋
do you mean extra as in they'll owe you credit? You'd be better of charging you card and then sending in the 300.00
a week before the due date.
2007-10-12 22:37:52 · answer #5 · answered by Anonymous · 0⤊ 0⤋
It would be great except the fact that you are going to be running up the balance again. So the end result is no gain. It is best to be at 30% or less of your limit
2007-10-12 20:30:04 · answer #6 · answered by Pengy 7 · 0⤊ 0⤋
Yes, pay it off if you can.
2007-10-12 19:45:34 · answer #7 · answered by Exitwound 7 · 1⤊ 0⤋
no effect possable loss of money.
2007-10-12 19:45:48 · answer #8 · answered by Anonymous · 0⤊ 1⤋