02-12-2013 07:33 AM
02-12-2013 07:41 AM
Greetings all. Hopefully this question is pretty clear.
I have a Capital One Secured with a $200.00 limit. I strictly use it for Gas and little odds and ends only. Nothing major goes on this card. The question I have is this.
My statement prints on the 9th of each month. If I pay the bill prior to the statement date, how does that help me build a credit score, especially if the CCC reports once a month?
I've read that 1% to 9% maximizes your score. If the card is your only card, don't pay it before the statement date or else your util will report as 0%. Instead, pay it down so that there is at least a 2$ balance on the card by the statement date.
02-12-2013 07:54 AM
But what happens if I pay after the statement has posted? So, if I have about $170.00 on the card, get my statement (electronic) along with the due date, then pay it all at one time.....will that help with utilization?
02-12-2013 08:02 AM
02-12-2013 08:06 AM
02-12-2013 08:16 AM
Charged - Some people do not have the luxury of not paying interest. This is why credit cards are made.
Just be responsible with credit and dont carry large balance over time if possible. If you are look for a low interest CC.
I understand, there's different situations where you might not be able to pay them off like if you're living beyond your means OR have unexpected expenses that savings doesn't cover. I myself have quite a bit of debt but will be out in 2 years.
I say rule #1 is to never pay interest, because I know first hand how being buried alive feels. Just a few months ago I was paying $765/mo in interest. If I can help someone by telling them not to pay interest / not to carry balances, and prevent them from getting into the same boat I'm in, then I've served a purpose.
02-12-2013 08:24 AM