hwmabire3 asked:
I recently got a credit card with a very low limit of $500. I am trying to establish credit for myself. Therefore, I would like to know if I should pay off the full amount of the credit card bill each month if I can afford it, or of it would be better for me to just pay some of it. Which will look better on my credit record?
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I recently got a credit card with a very low limit of $500. I am trying to establish credit for myself. Therefore, I would like to know if I should pay off the full amount of the credit card bill each month if I can afford it, or of it would be better for me to just pay some of it. Which will look better on my credit record?
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#1 by pj_mark115 - September 19th, 2009 at 13:23
if you can that is best. gives a good credit rating
#2 by Jcontrols - September 19th, 2009 at 16:49
Pay it off and on time. It’ll save you money and it looks great when you pay on time! ;-)=
#3 by rubyrosecat - September 21st, 2009 at 19:18
Absolutely yes, beyond any shadow of a doubt.
Not just for your credit rating either. These things can very quickly get out of control, and you’ll find you’re offered more and more credit cards and loans and you can end up in serious trouble with them if you max the lot out because the interest is so high.
#4 by Indiana Frenchman - September 22nd, 2009 at 03:03
one point of view ..
“You can maintain a good credit score as long as you pay at least the monthly minimum. However, your score will eventually be lowered if you owe too much money or have too many open credit lines even if you’re still making regular payments. Credit bureaus don’t like to see people with large credit card debt because it makes them a greater risk for a loan.
Credit card companies do prefer to see you carry a monthly balance because they make more money on their interest charges. However, your credit score has nothing to do with how much profit your credit card company is making off you. You’re doing the right thing by paying off your monthly credit card balance in full whenever possible. You’ll avoid paying high interest charges and your credit score should stay just as high, if not higher, than your friend’s score”
More at web page…
#5 by jenel c - September 25th, 2009 at 13:01
Yes, you never want to in cure charges. You only want to build credit not pay fees. Always pay on time and use it often to show credibility.
#6 by diveace1968 - September 25th, 2009 at 21:15
pay as much off as you can afford,that way your less likely to end being in debt,
they charge loads if you owe money and can take you years to pay off
#7 by David W - September 28th, 2009 at 11:22
I have a UK creidt card which runs up to £2,500.00 $5,120.00 per month.
I always pay it off in full to avoid paying interest, plus if I need a loan, I always get one with no hassle.
You can’t beat a good credit rating!
#8 by booger0819 - October 1st, 2009 at 06:38
paying it off each month is better for you….you will get the same credit rating as long as you pay the amount due (whether the whole amount or the minimum) on time…why pay the extra interest if you don’t have to?
#9 by P J - October 3rd, 2009 at 22:18
“Credit bureaus don’t like to see people with large credit card debt because it makes them a greater risk for a loan.”
Credit bureaus could care less about how much you owe they simply report what is in the records and the creditor makes a decision based on your debt to income ratios, how well you pay current debt etc.
#10 by SPIFIMAN1 - October 4th, 2009 at 02:29
You have a lot of good answers. I would only add a couple of things.
First never exceed 30% of your credit limit in any given month $150.00 in your case.
Second pay it off in full before the due date.
This will do two thing. First it will establish a payment history and second it will keep your debt to credit ratio low. These two things alone make up 65% of your credit score.
I have done this with two credit cards for the last couple of years and have raised my score over 150-points.
#11 by H. A - October 7th, 2009 at 06:42
The new credit card itself will lower your credit score a little for a few months, and if you use it over thirty percent, which you shouldn’t unless you always pay it off in full monthly or at least down to a balance that is no more than thirty percent of the cards limit, or in your case to no more than $150.00 you will ensure that over the long haul, say about six months, that the card will give you your best score. Paying the card off each month in full will definitely give you the best ratings and if you are not using it over the thirty percent figure and paying it off in full each month, it will maximize the best rating for that card.
#12 by homeiyi - October 7th, 2009 at 17:12
Definitely pay your bill in full. What the banks or other institutions are interested in is how responsible and reliable you are. Will you be able to make repayments? Can they trust you based on your spending and repayment habits?