pay off credit cards each month, or leave small balance?

[ezbtr]

was just wondering which best for my credit rating??

 

[MTboatguy]

Re: pay off credit cards each month, or leave small balance?

I pay mine off each month, then normally we will go out to dinner a couple of times to keep them active...seems to have worked out good for our rating, if the number of pre-approved junk other companies send me each month means anything!!

 

[DaNinja]

Re: pay off credit cards each month, or leave small balance?

Call Dave Ramsey and ask him that question. I dare you..

 

[Summer Fun]

Re: pay off credit cards each month, or leave small balance?

Yep keep a very small balance on it and pay on time to boost your credit ratings.

Call Dave Ramsey

Who is that ??

 

[sasto]

Re: pay off credit cards each month, or leave small balance?

Pay 'em off each month..... Ask Clark Howard! I charge everything.....almost.

 

[MTboatguy]

Re: pay off credit cards each month, or leave small balance?

I rarely have cash on me(I been married to long!) so the cards get used quite often, not enough to keep me from paying them off, but I stopped carrying cash many years ago..

 

[Fireman431]

Re: pay off credit cards each month, or leave small balance?

Pay them off if you can. You're just giving away money in the form of interest. If you have a 0% interest rate, then leaving a small balance on them wouldn't be so bad. Let your money work for you instead.

Credit cards should be used for convenience, not credit. If you want to improve your credit rating, you would be better served by going to a bank and getting a loan to cover paying off your cards. This works in your favor towards your credit rating. Of course, the key is to not used your cards afterward if you can help it,

 

[dingbat]

Re: pay off credit cards each month, or leave small balance?

We have a United Mileage Plus card. We charge everything and pay it off in full every month.

We recently prequalified for a mortgage for a new home. All three credit scores where above 800. Apparently the credit agencies don't have a problem with paying in full each month.

 

[aspeck]

Re: pay off credit cards each month, or leave small balance?

Do you really want to pay interest each month? I know I don't! Pay them off each month, and if you can't pay them off each month, don't use them.

 

[kenmyfam]

Re: pay off credit cards each month, or leave small balance?

Pay them off and on time. Nothing better than short term 0% interest and the credit score stays great as you are using them and paying them off constantly. At least it works that way for me.

 

[JB]

Re: pay off credit cards each month, or leave small balance?

I always carry a couple of Cs in cash, but only use it at garage sales and to pay my housekeeper. Everything else goes on a card which is paid off each month.

My credit rating is still scarred by a scam I suffered 11 years ago, but, because I pay everything, and on time, my rating is back up near 800.

I do not think carrying a small balance offers any benefit. These days I think the agencies use income to debt ratio as the main measure. That way, even a low income won't hurt you if you owe nothing and pay everything on time.

 

[DaNinja]

Re: pay off credit cards each month, or leave small balance?

I always carry a couple of Cs in cash, but only use it at garage sales and to pay my housekeeper. Everything else goes on a card which is paid off each month.

My credit rating is still scarred by a scam I suffered 11 years ago, but, because I pay everything, and on time, my rating is back up near 800.

I do not think carrying a small balance offers any benefit. These days I think the agencies use income to debt ratio as the main measure. That way, even a low income won't hurt you if you owe nothing and pay everything on time.

FICO doesn't care about income or net worth. High FICO just means that you borrow often and pay on time.
Dave Ramsey calls it the "I love debt score". His credit score is zero with a net worth probably better than $10 million.

 

[ezbtr]

Re: pay off credit cards each month, or leave small balance?

Oh I do pay mine off every month, only reason I got two newer cards was to boost my score(+ 8 points in two mos.), I owe zero in debt. Just wondered how the CC companies viewed/scored this.

 

[bruceb58]

Re: pay off credit cards each month, or leave small balance?

Pay it off every month. My credit score is over 800 and I have never had a credit card balance my entire life.

if you are going to get a gredit card, the Chase Freedom card gives you $150 credit if you purchase $500 within the first 90 days. They also have 5% back on purchase from various types of retailers that changes every 3 months.

 

[JRJ]

Re: pay off credit cards each month, or leave small balance?

Oh I do pay mine off every month, only reason I got two newer cards was to boost my score(+ 8 points in two mos.), I owe zero in debt. Just wondered how the CC companies viewed/scored this.

Sounds like you are doing it right. We lock up unused cards so they don't get lost or stolen.

 

[Brewman61]

Re: pay off credit cards each month, or leave small balance?

Carrying a small balance does nothing for your credit score. Use less than 33% of your card's limit- that's huge.
Don't apply for a bunch of credit or loans over a short span of time.
Pay all your cards, loans, and other credit reported debt on time.
These three things make up the lions share of your credit score. Paying off in full vs carrying a small balance does nothing, other then require you to pay interest. They don't look at balances other than to see if you're using too much of your available credit.
Maxing out a couple cards will hurt. Paying late will hurt. Bankrupcies and leins will hurt.

 

[pecheux]

Re: pay off credit cards each month, or leave small balance?

It's paying "on time" that counts ... and paying a bit prior to due date is a + value.

 

[kenmyfam]

Re: pay off credit cards each month, or leave small balance?

Great advice here from what I see.

 

[sasto]

Re: pay off credit cards each month, or leave small balance?

Carrying a small balance does nothing for your credit score. Use less than 33% of your card's limit- that's huge.
Don't apply for a bunch of credit or loans over a short span of time.
Pay all your cards, loans, and other credit reported debt on time.
These three things make up the lions share of your credit score. Paying off in full vs carrying a small balance does nothing, other then require you to pay interest. They don't look at balances other than to see if you're using too much of your available credit.
Maxing out a couple cards will hurt. Paying late will hurt. Bankrupcies and leins will hurt.

Ditto....I use a card . Pay it off. My credit is 0....This may very well bite me someday.

 

[DaNinja]

Re: pay off credit cards each month, or leave small balance?

Ditto....I use a card . Pay it off. My credit is 0....This may very well bite me someday.

I guess...zero or 800+ is the goal depending on where you are on using debt to build wealth.