Do you pay your credit cards off every month or do you use them as loan?

Answer 1

A good rule of thumb for any type of credit (including credit cards) is to avoid using them at all unless you will financially benefit from thier use.

Banks make money when people use credit-that's why they pay for all those commercials to get you to use thier credit cards. They sell the convenience of credit cards because they know people will use them to buy things they don't need.

Credit cards are especially notorious for causing problems because most people consider them "short-term" debt. The same person that would laugh at a Mortgage Loan Officer offering a 10% interest rate on a home loan, wouldn't have any problem at all paying 15-25% interest on football tickets or a new television. The reason is that the debt is small so, the actual cost of the interest would be small as well. That is, assuming they pay the debt in a very short period of time.

It has become very common in America for homeowners to rack up $25k-$50k in "short-term" debt (credit cards, car loans, furniture loans, etc.) and then refinance their 30-year home mortgage every 2-3 years so they can take cash out to pay off that "short-term" debt. Of course, if you're refinancing the debt from one loan to another, then the short-term debt acutally becomes long term debt. But, since the credit cards now have a $0 balance, the homeowner feels that are making progress.

So, the short answer is, if you use your credit cards, pay them off quickly. If you can't pay them off quickly, question why you are using them in the first place. If you can do without the product or service you were going to buy for 30 days, you probably didn't need it in the first place.

I hope this helps.

Answer 2

Don't have any any more. Or less.
Dallas 10 Giants 7 ...
Revolving credit is one of the worst introductions made to modern society. Capital One taught me what's in my wallet is cash only. No hassles , gimme a break. I had so many problems with them and once I got divorced I filed for bankruptcy. He paid off the mortgage in New Zealand as I paid via credit to live in two places. No way to catch up. That's the idea. AT $25 late fee $25 dollars here, there at one point a card from $100 to restart credit was being charged out at over $2,000. That is with making good faith payments, always calling.. keeping in touch. SO buyer beware. NEVER use them as a loan. If you do not have the money do not spend it !
edit 10- 14 ... Dallas where are u?

Answer 3

Your father is incorrect... you could surely pay off your superb stability each and each month while it relatively is due, no longer accrue any activity and your credit will develop basically fantastic. The trick to reliable credit is this: in no way use greater advantageous than 30% of your credit shrink in keeping with billing cycle. you may desire to attend to get a billing assertion and pay the quantity due on time. To be on the risk-free section pay the stability 5 to 10 days till now due date. The credit card companies checklist your month-to-month fee to the credit bureaus. The bureau isn't activity in no remember if or no longer you paid finance costs yet desires to be sure which you do no longer overextend your self (max out the cardboard) and which you're making regardless of fee is due in a well timed way. it relatively is the credit card company that would desire to such as you to have self belief that preserving a stability is what builds credit and hence they supply you a minimum fee due and the choice to pay in finished. The credit bureau is the entity that comes to a decision what your score isn't the credit card company you have the account with. Your purpose with credit is to impression the credit Bureau no longer the credit card company.

Answer 4

When the interest rate is > 0%, I pay it off every month.

When there is a 0% APR promotion, I use it as an interest-free loan, put the money in a money market fund, and make a profit!

Answer 5

What's the point of having a credit card ( Playing with snakes) if you are just gonna pay it off everymonth?

Use cash or a debit card.

you play with snakes you are gonna get bit.

Debt Free is Definitely the way to be!
Love me or Hate me, You know i'm right!

Answer 6

Used to carry a balance for years. Finally wised up and paid them all off and now pay them off every month.

Answer 7

We use credit cards only as a convenience. They are paid off in full when due.

Answer 8

Pay them off every month religiously

Answer 9

oh yea every month, I have real low interest, but some cards out there are 24% interest, and thats highway robbery, and its sinful to charge usery !!!!!!!!!! (interest)