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Do I pay my entire bill or leave some and accrue interest?

C

cchen

Diamond Member
My mom says that even if I pay off my credit card in full I am building my credit. The person at Capital One told me that I don't build credit if I don't leave some and accrue interest. Who's right? And what's the best way to build up my credit? I'm 18.
 
All I can say is that I have perfect credit and never carry a balance. So I believe you don't have to carry a balance. And keep in mind that Capital One makes more money when you carry a balance, so I think that helps to explain the answer you got.

The best way to build your credit is to pay your bills on time every single month. It's really that simple.
 
Even if your credit does become a little better to give money to rich corporations it would be stupid to buy credit for thousands of dollars over the years. If you were them you would gladly give more credit to the customers who are getting poorer to get you richer.
 
Don't waste your money, pay it off now. the CC company has a vested interest in you not paying it off right away. That's how they make their money.
 


<< Don't waste your money, pay it off now. the CC company has a vested interest in you not paying it off right away. That's how they make their money. >>



that and gouging merchants at +4%
 


<< that and gouging merchants at +4% >>



Gouging? Imagine how much retail sales would drop if people had to pay cash. I think merchants make out pretty well - for a small fee, they probably do ten times the amount of business.
 
yeah, and imagine all the unfortunate reposession companies going out of business.

sorry, but i'm just not a fan of the "buy now pay later" concept. that leads to so many people screwing up their lives.

and IMHO CC companies make enough by charging the consumer 20 points that they shouldnt have to charge merchants for accepting their card
 
Don't get me wrong - I am also completely against people buying on credit unnecessarily. All I am saying is that, from the merchants point of view, that 4% fee is well worth it to enable them to take credit cards.
 
as everyone else has said, you do not need to carry over a balance to have good credit..

the amount of credit you are extended might vary depending on your keeping a balance... but as far as good credit NO you do not need to keep a balance. But that is only in the short term.

Cut only what you can chew.. if you get into a habit of keeping a balance you will screw your financial health in the long run.

 
Don't carry any balance if you can pay it off. I never carry any balance and never have shortage of offers for new credit cards.

Never been turned down for 2 house loans and 4 auto loans.
 
How long (years & months) have you have a credit card that's in your name?
How many cc's have you had in your name?
What was your initial limit, have you requested increases, if so were they granted or denied?



<< The person at Capital One told me that I don't build credit if I don't leave some and accrue interest. >>



He's BS'ing, I'd pay it off in full every month.
 
I will agree with everyone else here and say pay it off. I have never carried a balance on my CC and have paid the bill off every month and currently have almost perfect credit when i checked in Jan.

Viper22
 


<< How long (years & months) have you have a credit card that's in your name?
How many cc's have you had in your name?
What was your initial limit, have you requested increases, if so were they granted or denied?



<< The person at Capital One told me that I don't build credit if I don't leave some and accrue interest. >>



He's BS'ing, I'd pay it off in full every month. >>



I've had my card for 7 months, this is my only card and my limit is 999
I can't increase my limit until I've had the card for a year
 
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