I'm wondering if its true?

Question

I've heard that being late on a credit card payment, say once or twice a year, is actually BETTER for your credit than being on time all the time, because that way the credit card company gets to make more money on you.

Is that so?

Answer 1

no this is not true. Always pay according to t he Terms and Conditions.

Answer 2

That is crazy, i am in the car buisness and I assist in getting customers with auto loans. Being late on your credit cards actually lowers your credit scores on all 3 bureaus. It is good to have activty on your credit cards but do not go over 35% of your available credit. For example if you have  a card that has a $1000 linit, try to keep your balance below $350.

Credit card companies has to pay the credit bureaus money everytime they report to them. This is how the bureaus make there money.

I hope this helps...

Answer 3

Every time you're late with a payment, it's a black mark on your credit record. Always make payments on time.

Another thing that many people don't realize is that if you take out a loan and pay it back really early, say after 2 or 3 months, you get no credit rating at all out of the exercise. Good credit ratings are based on regular payments, on time, over a period of time - at least 6 months.

Answer 4

Yes, the credit company will make money off of you if you are late, over the limit etc., but you will get a black mark on your credit bureau report, which is not good.

I don't know why they would tell you that, it is a lie, as I said yes they do make money, but at the expense of your credit score taking a dive, and you losing credibility.  You choose which way you want to go:

Late payment a couple of times, because you listened to someone that doesn't know what there are talking about, or Good credit, because you choose to pay on time, the way it's designed.

Answer 5

Someone lied to you. Every time you are late you are actually showing lenders that you may be in over your head. You are also hurting your score and potentially paying more in interest.