Credit card question? How should i pay the bill.?

[jsbush]

I'm using my CC to build credit, so I pay off the statement my CC company sends me each month in full. But should I pay off what the statement says, or what I currently owe at the date I pay, bringing me back to 0$?

I'm asking because I'm never at 0$, I always owe something. Like my statement is for the 1th of every month lets say, and i buy something the 2nd it goes on next months bill, but I only get my statement the 5th or 6th. So by the time I pay my bill, I already owe another 100$ or whatever, which shows on another statement.


Should I keep paying off every bill in full, or should I pay off everything I owe every month even if it shows on next months bill?

 

[CaseTragedy]

pay what the bill says. you wont be charged interest on purchases after the statement was closed.

 

[Vic]

Originally posted by: CaseTragedy
pay what the bill says. you wont be charged interest on purchases after the statement was closed.

yep

 

[jsbush]

I know I won't be charged interest. But what is the best thing to do to build up credit?


Thanks

 

[KEV1N]

You do not need to carry a balance to build credit. This is a myth. Just pay the card in full each month and don't give your money away to the CC company.

 

[Vic]

Originally posted by: jsbush
I know I won't be charged interest. But what is the best thing to do to build up credit?


Thanks

Ah, I see.

That doesn't matter. Simply keep the balance less than 50% of the limit and you're fine. As long as you keep using it, the credit bureaus don't know that you pay your card off in full every month. All they see is that in November you had a balance of $346 with a minimum payment of $25 and that you made the payment on-time in October, and then in December they see a balance of $412 with a minimum payment of $30 and that you made the payment on-time in November, etc.
Only this information is on your report regarding an individual account: creditor (and their contact info), account # (last 4 #'s of credit cards is omitted), date account opened, last date the creditor reported the account to the bureaus, high balance or limit, revolving (credit card) or installment/mortgage (and # of months), balance, and minimum payment owing.

The surest and only way to build credit is to make all your payment on time. You don't need to carry a balance, but then again it doesn't matter that you pay it off in full or not -- that neither hurts nor helps your credit. Just keep your balance low compared to the limit because a high proportional balance (more than 50% of the limit) can hurt your credit. I recommend just paying the balance on the statement, regardless of new charges.

 

[jsbush]

Thanks for the info Vic.
Thats what I wanted to know. 😀

 

[RossMAN]

D'oh Vic beat me to it!