When do I pay off my credit card?

Question

I just got my credit card last month and the payment is due on the 9th of September... I've heard that there is a certain way you should pay it off to build your credit. I can pay it in full now.. but i'm scared it won't do anything to build my credit...

Answer 1

My husband and I are pushing 30 and just got credit cards for the first time recently.  We've been able to get a mortgage, loans for new cars etc...but when we bought our last car we didn't qualify for the "excellent" rate because we were slightly short on our score due to lack of revolving credit history.  Long story short, we did our research and paying on time every month is what raises your credit score.  We pay it off in full...and even have a rewards card that gives us cash back or gift certificates.  We have no intention of "splurging" with our new credit line....basically we put our bills on it and pay with one check to Discover rather than 7 or 8 to our utility companies.  We never put on it what's not in our budget to begin with, so we always have the cash to pay it off.  It's also nice to know that if we have a major emergency we have a means to take care of it.

We also discovered that your score actually goes down every time you open up a new line of credit, and goes down when you close a card.  In rare instances, usually with those high rate cards geared towards poor credit history types...they will actually CLOSE your account if you pay in full on time, every month as they aren't making any money extending credit to you. (It's in the fine print that they can close your account at any time for any reason...this even happened to my mother, fervently paying it off every month to reestablish credit only to have the card cancelled with no further explanation)  Leaving a balance at the end of the month of more than 10% of your available limit will also impact your credit score.  

I personally think credit cards are a big freakin' scam run by greedy b******s hoping you impulse charge the c**p out of the card, always make minimum payments, and therefore hike your rate to 29.99%.  Don't fall into their trap and you'll be fine.

Answer 2

Paying it in full certainly will not damage your credit.   If you look at a credit report, it basically is concerned with if you paid ON TIME.   I wouldn't fret about paying off the balance.  NEVER carry a CC balance, if possible.

Buy some stuff every month and pay it off every month.  Your report will look great.

Answer 3

Just pay it before the due date.  Your credit goes down if you're late, and goes up if you have a good history of paying your bills on time.

Answer 4

Pay it off asap and cancel the card.  Building credit is the biggest joke of 21st century. It shows how much you love to be in debt.  look at the way it works. you have to borrow money and make payments on time to get a high score. You also, need to keep borrowing money and keep making payments on time to keep a high score.  It's a terrible financial plan. It keeps you in debt.

If you pay as you go. If you live on less money than you make. You will have money and not have to worship at the alter of great fico.

Answer 5

Well if you dont pay it then your credit will get worse

Answer 6

pay off the amount due in full before the due date.  This will build up your credit as you continue this way.  Sometime when you need something really important and expensive use your card and pay it off on time.   On time payments are important so is your maximum credit but do not pay service charges just to build up your credit score.  

Just having a card establishes some credit and as you use it responsibly you will increase your credit score. As much as possible use your card to pay bills like rent and utilities and then pay your card before the due date.  This activity will soon build up your credit.

Also frequent items like gasoline, clothing, etc but DO NOT buy something just to build up your credit and do not pay interest just to build up your credit.  You have a good attitude toward credit cards!

Keep it up!

Answer 7

I suggest keeping a balance on your credit card of no more than 10% of your total limit. If your limit is $1000, keep a $100 balance and pay a little more than the minimum ON TIME each month.  

Answer 8

When you pay anything off in full it builds up your Credit Score. It can lower it by being just a few days late not counting the late fees credit card or loan companies charge.

I say if its not taking money from somewhere else that will run you short later in the month then go for it by paying any bill off in full.

It will make you feel better too knowing a bill is (knocked out).!!

Answer 9

Here's what you need to know:

Dont use all your available credit....keep it at least below 50% or even 30% and mos def dont charge for more than you can afford to pay in full each month. And no impulse buying or charging stuff you dont need. Thats how people get in trouble with credit cards in the first place.

If you do online banking you can set up the payment to be paid on the 7th or 8th in full, or you can pay it off right now. Just make sure the payment posts to your credit card before the due date, otherwise you get charged a late fee and the credit card might report you as being late, which dings your credit.

Dont forget that part of building your credit also ties in with building an emergency fund and a savings account. Good credit wont help you any if you cannot afford to pay down a portion of the debt (for mortgages and cars). Infact, if you've got cash credit wont make that big of a difference since you can buy stuff in cash and never need to carry debt. Dont get suckured into thinking being in debt is a way of life.

Answer 10

pae the bil & dont fret bout yer "kredit".

Yu dont want kredit, yu want tu get sumthang with munee.  

Answer 11

if you pay, in full, every month, it will help your credit.

any payment will help build your credit, but when they look at the history and it shows you pay in full every month, its good.

Answer 12

Pay it off straight away. Credit Cards are the Devil's toys.

Answer 13

Pay it in full. Don't believe people who tell you to let a balance stand on your account. All you are doing is letting the credit card company charge you interest on money you owe them. It is a ridiculous idea. As long as you can pay it off pay it. I have had credit cards for years

and always paid off the balance every month and I have a top credit

rating. The credit card companies charge you 18 to 24 per cent interest and they get their interest at 4 to 6 percent so figure out how much money they are making on you charging you interest every month. This is how they make their money but making people believe they have to leave a balance so they can get 'a credit rating' it is the

biggest myth in the credit industry. They just want to make money off you.