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Established Member
FluteLadyWHS12
Posts: 51
Registered: ‎11-20-2012
0

How to proceed with CC

Hi! So I recently apped for a WM CC in Oct. was approved. I'm in the process of rebuilding. So, I've used it a few times and paid it off within a week. Then last time I charged about $60 and left $20 after payment. Now, the statement has cut. It says I owe $20 by 12/13. Ok, so what do I do now? I know I have to pay by the due date of course. But once I pay say if I pay today. When can I use my card again? Is there some wait time or something? Thanks. 

Valued Contributor
daybreakgonesXe
Posts: 1,776
Registered: ‎11-17-2012
0

Re: How to proceed with CC

If you're talking about using your card in general, yes you can still use it even if you have a balance! There's no "wait" between statements, so you can spend all you like until the due date and then pay your $20!

 

If you mean if there's a hold on your account (aka if you pay today) they MAY place a hold on part of your available limit. Different companies have different hold payments. The most frequently seen is "double trouble" (for you, that would mean even though you made a payment for $20, until it clears, there will be an extra deduction of $20 from your available credit!) As long as it doesn't eat up your credit limit, you can still make purchases :smileyhappy:

 

All the best!

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Moderator Emeritus
webhopper
Posts: 7,230
Registered: ‎09-16-2011
0

Re: How to proceed with CC


FluteLadyWHS12 wrote:

Hi! So I recently apped for a WM CC in Oct. was approved. I'm in the process of rebuilding. So, I've used it a few times and paid it off within a week. Then last time I charged about $60 and left $20 after payment. Now, the statement has cut. It says I owe $20 by 12/13. Ok, so what do I do now? I know I have to pay by the due date of course. But once I pay say if I pay today. When can I use my card again? Is there some wait time or something? Thanks. 


Hi!  Welcome to myFico forums!

 

There is usually not a wait time... you can keep using your card and paying in full as long as you have available credit on the card.  Some lenders will place a hold on the first few payments..  (capital 1 is notorious for this)

With GE wal mart you'll be just fine.   If your limit is $500 and you have a $20 balance, you could go purchase $450 worth of goods without any issue.

 

Best of luck!


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Established Member
FluteLadyWHS12
Posts: 51
Registered: ‎11-20-2012
0

Re: How to proceed with CC

Thanks! I'll be going in the store to pay it today, and then purchase some things and then pay that off within the week! 

Established Member
FluteLadyWHS12
Posts: 51
Registered: ‎11-20-2012
0

Re: How to proceed with CC

So, I was just on the phone with my CU because I want to refinance my car loan. Anyway, she was talking to me about a credit card and mentioned that I shouldn't pay the  whole $20 that I should leave $5 on so it will report a balance and such. Is this true? Should I do this? Don't I have to pay the amount due or wont it charge me late fee? Or is it I just have to pay to avoid interest charge? Agh, I'm so confused!

Moderator Emeritus
tinuviel
Posts: 4,877
Registered: ‎11-02-2010
0

Re: How to proceed with CC


FluteLadyWHS12 wrote:

So, I was just on the phone with my CU because I want to refinance my car loan. Anyway, she was talking to me about a credit card and mentioned that I shouldn't pay the  whole $20 that I should leave $5 on so it will report a balance and such. Is this true? Should I do this? Don't I have to pay the amount due or wont it charge me late fee? Or is it I just have to pay to avoid interest charge? Agh, I'm so confused!


 

Anecdotal evidence suggests that your FICO score is improved by having one credit card report a small balance, between 1% - 9% of your CL. So, if you have a card with a $500 CL, letting a balance of $5 report on that card -- and only that card -- would show an overall utilization of 1%. I experimented one month and allowed 0% util to report, and lost 3 points; the next month, I allowed 1% to report and got back the 3 points. So, it does seem to have some effect.

 

Now, it is not a good idea to refrain from paying your statement balance in full just so that you report a small balance; you'd wind up paying interest if you did so, and you really don't want to do that if you can avoid it. But, if you use your card frequently through the month, you can allow a small balance to report and then pay it off right away after the statement cuts. Then, proceed with your normal monthly charges, paying off all but a small amount before the statement cuts. Lather, rinse, repeat.

 

Do bear in mind that if you don't report a balance, it will not hurt your history with your card issuer; it will only affect your FICO score as mentioned above, and most likely it will only marginally. The most important thing for you to focus on is to pay your bill on time, every time. Utilization changes from month to month, and FICO has no memory of these changes; high util one month can be corrected by paying down balances and reporting low utilization the next. Payment history, on the other hand, reports for seven years, so make sure to keep it clean! Best wishes.

 


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Established Member
FluteLadyWHS12
Posts: 51
Registered: ‎11-20-2012
0

Re: How to proceed with CC

^^^^Thank you for this! 

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tinuviel
Posts: 4,877
Registered: ‎11-02-2010
0

Re: How to proceed with CC


FluteLadyWHS12 wrote:

^^^^Thank you for this! 


You're most welcome. :smileyhappy:

 


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