I have a secured credit card I put $500 in. I plan on using it for gas only (that way my monthly amount can't get out of hand). What is the best way to pay it off? Should I wait until like a day or two before my statement is due, or just wait a couple weeks until there is a balance or what?
best way to pay on credit card??
- Thread starter zixxer
- Start date
if you're trying to build credit, try carrying a small managable balance over a few months just to see what its like, and how it affects your attitude towards making more purchases. Otherwise, if you're happy where you're at, pay it off in full asap.
RossMAN
Grand Nagus
- Feb 24, 2000
- 79,037
- 444
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Originally posted by: MrDudeMan
this isnt necessarily true. some debt is good, not too much though, and only for a short while.
if you ever get in the situation where you cant pay it all off, but you can send in more than the minimum, make sure you say "i want to apply {insert amount over min. payment} to the principle" otherwise they apply it after the interest was added. that might not make a difference on small payments, but my sister spends like 10-12k/month on her card, and they usually pay it off each month (bastards are filthy rich), but the one time she sent in the minimum, she got pwned by the interest.
Bullsh!t
Use your credit card
You receive a bill or check the credit card's web site
Pay it off IN FULL before the due date
Paying interest (or having "some good debt" is ignorant).
RossMAN
Grand Nagus
- Feb 24, 2000
- 79,037
- 444
- 136
Originally posted by: MrDudeMan
Originally posted by: RossMAN
Originally posted by: MrDudeMan
this isnt necessarily true. some debt is good, not too much though, and only for a short while.
if you ever get in the situation where you cant pay it all off, but you can send in more than the minimum, make sure you say "i want to apply {insert amount over min. payment} to the principle" otherwise they apply it after the interest was added. that might not make a difference on small payments, but my sister spends like 10-12k/month on her card, and they usually pay it off each month (bastards are filthy rich
Bullsh!t
Use your credit card
You receive a bill or check the credit card's web site
Pay it off IN FULL before the due date
Paying interest (or having "some good debt" is ignorant).
do you actually know anything about the credit company and how it operates? they dont care if you paid it off in full every month. they care if they see "delinquent" on it. thats it. if you have debt, and lots of it, that is your own stupid fault. im not saying run it to the max and create hundreds or thousands and bury yourself. i am not 100% sure, however, why it is sometimes good to have a little. i wont pretend like i am going to argue with you about that, so dont waste your time flaming me, but i didnt make that up myself. i have heard it from plenty of reliable sources over the last few months/years, but im not exactly sure of the reason.
edit: hmm...you may be right. i might have to ask about this.
You're right I know absolutely nothing about banking or finance, my humble apologies.
How could I be so blatantly ignorant and blind? PAYING INTEREST IS GOOD!!!
Thank you for showing me the light.
CC makes most of its money from the transaction fees each and every time you use the card they receive. Interest is icing on the cake.
RossMAN
Grand Nagus
- Feb 24, 2000
- 79,037
- 444
- 136
Originally posted by: MrDudeMan
god you are so fvcking annoying sometimes. see the edit dipsh!t?
Because you bring out the best in me
Yes I saw your edit, notice how it was quoted when I replied?
*hands you the asshat of the quarter crown, please take good care of it*
MrDudeMan
Lifer
- Jan 15, 2001
- 15,069
- 94
- 91
Originally posted by: RossMAN
Originally posted by: MrDudeMan
god you are so fvcking annoying sometimes. see the edit dipsh!t?
Because you bring out the best in me
Yes I saw your edit, notice how it was quoted when I replied?
*hands you the asshat of the quarter crown, please take good care of it*
so if you saw it, why then did you post that annoying ass comeback? i basically told you that you were right.
ok...
my concern is building credit. Do I need to:
1) pay it off the next day after purchasing something with it
2) wait until two or three days before the balance is due and I would otherwise have to pay interest
my concern is building credit. Do I need to:
1) pay it off the next day after purchasing something with it
2) wait until two or three days before the balance is due and I would otherwise have to pay interest
PingSpike
Lifer
- Feb 25, 2004
- 21,758
- 603
- 126
Do NOT wait until 2-3 days before the due date. If you're going to pay it all off, send the check at least 1 week before the due date (5 business days). Credit card companies make mucho dough off of late fees, which they have been increasing lately, because of this they will often route your check through several facilities to lengthen the time it takes to get to them. Then they charge you a late fee when it takes 1000 years to get there. You could probably b|tch if this happened to you and get it taken off, but its better to avoid it all together. I'm not making this sh|t up.
As for the balance thing...I don't know, I always pay it off in full. Mostly because they won't give me more than $500 of credit and I need that for monthly expenses. If I held the balance I would be fvcked next month. I would tend to think paying it off was the way to go though.
you need to read your credit agreement because you clearly don't understand it. you have a grace period for purchases, during which you will not accrue interest. get the bill, pay it before it's due. there isn't much to it.
I don't pay with a check.. I have bank of america and just transfer funds from my checking acct to my credit card.
Vic
Elite Member
- Jun 12, 2001
- 50,422
- 14,337
- 136
Credit card debt is generally the worst form of debt possible. The interest rate is usually high, usually variable, not tax deductible, and the amortization is infinite.
You should always seek to pay it off in full whenever possible.
Paying your CC debt off in full every month does not harm your credit. That is a myth. In fact, the opposite is true, paying it off in full helps your credit, as having a low balance on your revolving accounts (proportional to your limits) increases your credit score.
Having high revolving account balances proportional to your limits will harm your score. In fact, I have seen people who had sub-600 credit scores for no other reason except that they were maxed out on all their credit cards (otherwise, no late payments or any other derogs).
You should always seek to pay it off in full whenever possible.
Paying your CC debt off in full every month does not harm your credit. That is a myth. In fact, the opposite is true, paying it off in full helps your credit, as having a low balance on your revolving accounts (proportional to your limits) increases your credit score.
Having high revolving account balances proportional to your limits will harm your score. In fact, I have seen people who had sub-600 credit scores for no other reason except that they were maxed out on all their credit cards (otherwise, no late payments or any other derogs).
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