IF u use a credit card, do u pay it off or just the payment?

Answer 1

In most cases, you want to pay it off in full every month. This is if you use your credit card like most people - as a convenient way of buying everyday stuff.

If you pay in full every month, it's an interest-free loan and a lot of convenience. If you don't it's interest charges up the wazoo.

Now, if you want to use your credit card as a loan, that is OK. There are ways to use low-interest credit cards, especially those with introductory low rates. If you are using it as a loan mechanism, that's OK, but be sure you know what you are getting into. The credit cards have a lot of fine print and fees that can get you if you are not careful.

In general, if you use a credit card to buy something big and pay it off over time (like an installment loan), you should have a low APR credit card for that. Then, you should have a second card that you use for everyday purchases and pay in full every month. This strategy has two benefits:

1) You don't pay interest on the everyday purcases, becasue you pay in full at the end of the month.
2) You get a low rate on your loan card (assuming you stay current and pay attention to the fine print).
3) You can calculate and predict how much you need/want to pay to the loan card each month, and how long it will take you to pay it off.
4) You protect any promotional rate you got on your "loan card" by not using it for purchases. Part of the fine print of promotional rates generally include a clause that you pay the promotional rate first, which means you pay the loan you are paying 3% on before paying the purchase you are paying 30% on.

-->Adam

Answer 2

I pay my credit card bill in full every time I get it. Have you seen the interest rates? They're outrageous -- a "good" credit card has an interest rate of about 14% (that's AFTER the free introductory period -- and some cards have interest rates north of 20%). Heck, if you charge enough on your credit card you're only paying a little more than the interest every month if you make the minimum payment, so it takes forever for your bill to get paid off. Better to be responsible with spending and pay the bill in full every month -- it also helps your credit rating if you do that.

Answer 3

If you pay the minimum or infact anything less than the full amount you will end up paying a fortune in charges. The thing with most people is 1) they don't notice cos its all done monthly so looks less 2) people get carried away and generally live beyond their means.
They think when they get a few thousand credit limit that it is their money to spend!
HOWEVER - For those with a bit of nouse.... Get an interest free credit card. Then when you get the bill instead of paying it off stick the money in the highest interest bearing account you can find.
Carry this on until your interest free period runs out then clear the card. You'll find you'll end up with a stack of interest - All for free.
Good luck

Answer 4

If you can, it is best to pay it in full each month. Otherwise, try to make a little bit more than the minimum payment (if your min. payment is $25, pay $35/40/50). Just be sure that your payment is ON TIME, EACH MONTH. Even if it's just the minimum. Payment history is the most important factor when it comes to credit. So BE ON TIME.

Answer 5

Ideally you want to pay it off in full at the end of each month to avoid any interest charges. However most people just pay the minimum payment each month in which cases it can take years to pay the debt off.

If for any reason you cannot pay the balance off in full, pay as much as you can afford above the minimum to advoid the high interest charges that are typically associated with credit cards.

Answer 6

There are a few cards that require that the balance be paid off every month. However, most cards just carry a minimum balance.
It is a good idea to pay every card off each month to avoid making ridiculous interest payments.

Answer 7

I pat it off in full if I can, otherwise I pay what I can afford over the minimum payment. You always want to pay more than the minimum payment. And then stop using it, if you carry a balance over, until you pay it off.

Answer 8

I usually pay the whole thing, unless there is a 0% APR promotion, in which case I make just the minimum payment.

Answer 9

If you use credit card and you want to keep your credit score high you MUST pay your balance IN FULL each month.

Answer 10

Paying in full each month reduces the amount you pay in interest and keeps your credit report looking good.