Problem with carrying a balance?

[BlackTigers]

I got my first credit card a few months ago, and Discover gave me a pretty generous limit for me applying a week after my 18th.

I've been paying it off ahead of time, way ahead of time. Like, every time I use it I pay it down to zero within three days, haha.

Question though, will it hurt to carry small balances on it? Nothing to get into trouble with, but enough to show that I can carry and manage debt? I've heard various things in regards to how to improve a credit score, and am confused as to whether or not I need to keep it zero or carry some debt.

Thganks.

 

[nick1985]

lol balance.

Pay that shit off, son.

 

[Brainonska511]

It has a grace period, right?

I wouldn't pay it off immediately every time, as some banks put limits on the number of times you can pay off the balance per month.

Just wait till your statement comes and then pay it off all at once then. It gives you a chance to review your purchases, make sure you don't have to dispute a charge for bad service (while you still have the money in your pocket), etc...

Do not carry a balance past the end of the grace period. You do not want to be paying interest or carrying a balance over to the next billing cycle.

 

[duragezic]

It has a grace period, right?

I wouldn't pay it off immediately every time, as some banks put limits on the number of times you can pay off the balance per month.

Just wait till your statement comes and then pay it off all at once then. It gives you a chance to review your purchases, make sure you don't have to dispute a charge for bad service (while you still have the money in your pocket), etc...

Do not carry a balance past the end of the grace period. You do not want to be paying interest or carrying a balance over to the next billing cycle.

This.

Sure you can keep a balance into the next billing cycle, you'll just pay interest. If you have to carry a balance on occasion, do it and pay the interest and don't keep doing it.
Also no need to pay it off instantly every time. Just wait for the end of billing cycle, review purchases, then pay it all.

As for whether it helps your credit score; I don't know. But I'm not going to give more money to the credit card companies just so my credit score might be helped ever slightly. Simply paying it off always on time is great as it will build solid credit history and more likely to get a higher limit (if shown able to have and need).

 

[speg]

You don't have to pay it off right away. Every month you will get a statement date, which totals your expenditures for the last month. Then it gives you a due date. As long as you pay the ful amount (give on the statement date) before the due date, you won't be charged interest on anything.

If you don't pay it off in full, you won't get this no interest benefit for your next months purchases, and you WILL collect interest on new expenditures as soon as they are made.