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In order to establish credit when using a credit card, should you only make the minimum payment each month? OR Is it ok to pay it completely off monthly, without ever having to pay into interest?
Thanks for your help
Thanks for your help
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You should NEVER carry a balance on a credit card except possibly if you have a 0% deal. Otherwise, only charge what you can afford to pay for in full every month when the bill comes. You do not need to carry a balance in order to help your FICO. Using credit responsibly works just fine.Steve
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If you do carry a balance on your CC but you payoff the minimum will that hurt your score?Comment
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That depends on how large the balance is relative to your credit limit. Again, if you can't afford to pay the bill in full, you shouldn't be making the purchase, but if you do, don't charge more than 20-25% of your credit limit. So if you have a $5,000 limit, don't charge more than about $1,250.Originally posted by Accurise View PostSteve
* Despite the high cost of living, it remains very popular.
* Why should I pay for my daughter's education when she already knows everything?
* There are no shortcuts to anywhere worth going.Comment
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Pay off the balance and don't worry about the credit score so much. Like Steve's 1st reply, an active card, being used and paid off is just fine for building credit. And paying it off avoids the hefty interest charges.
Don't try and carry a balance as some trick to improve score somehow. Just do the right thing for your finances and the credit score will take care of itself.Comment
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