Explain this to me-use simple words LOL

[JMMD]

ok, so I want to use a CC to build credit. I want to use it for one expense per month and pay it off in full. As an example, say I set up my electric bill to auto-pay usiing the card. Then I set up auto-pay on the card so it just automatically gets paid in full each month.  How can I do this without having to pay interest on the card?

Thanks!

[Anonymous]

As long as the bal is paid off completely by the due date no interest will be charged. You can also pay it off a few days before the statement date if you don't want a bal reported.

[JMMD]

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@Anonymous wrote:
As long as the bal is paid off completely by the due date no interest will be charged. You can also pay it off a few days before the statement date if you don't want a bal reported.

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Thank you!

[SouthJamaica]

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@JMMD wrote:

ok, so I want to use a CC to build credit. I want to use it for one expense per month and pay it off in full. As an example, say I set up my electric bill to auto-pay usiing the card. Then I set up auto-pay on the card so it just automatically gets paid in full each month.  How can I do this without having to pay interest on the card?

Thanks!

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Just the way you said.

But it depends on the credit card and on the utility as to how to set up the mechanics of it all. You might or might not be able to get the utility to hit up your credit card every month. You need to check it out.

Also bear in mind that utilities often charge a service charge for credit card payments.

[Anonymous]

I agree with the above.  You may want to consider other bills that you have that likely don't charge you a fee when paid via CC such as your phone bill, car insurance, gym bill, etc.

Out of curiosity, why are you looking to only pay just 1 bill every month on your CC?  If you're going to PIF, you may as well send more of your bills (like the ones I mentioned above) through the CC.  It's essentially the same thing as paying with your debit card or check, just that your pushing the dollars through the card first and then paying off the card instead of the bill directly.  I'm not sure what CC you have, but if it's a rewards card this simply means more rewards.  If it's not a rewards card, pushing more transactions/dollars through it can be a positive thing and prompt the creditor to extend you a CLI at some point which indirectly can further aid in building your credit (and scores).

[JMMD]

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@SouthJamaica wrote:

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@JMMD wrote:

ok, so I want to use a CC to build credit. I want to use it for one expense per month and pay it off in full. As an example, say I set up my electric bill to auto-pay usiing the card. Then I set up auto-pay on the card so it just automatically gets paid in full each month.  How can I do this without having to pay interest on the card?

Thanks!

---

Just the way you said.

But it depends on the credit card and on the utility as to how to set up the mechanics of it all. You might or might not be able to get the utility to hit up your credit card every month. You need to check it out.

Also bear in mind that utilities often charge a service charge for credit card payments.

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Thanks for the info. I don't need it to be a utility, I just chose that for my example. I will see what reoccuring bills we have that I can use. 

[JMMD]

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@Anonymous wrote:

I agree with the above.  You may want to consider other bills that you have that likely don't charge you a fee when paid via CC such as your phone bill, car insurance, gym bill, etc.

Out of curiosity, why are you looking to only pay just 1 bill every month on your CC?  If you're going to PIF, you may as well send more of your bills (like the ones I mentioned above) through the CC.  It's essentially the same thing as paying with your debit card or check, just that your pushing the dollars through the card first and then paying off the card instead of the bill directly.  I'm not sure what CC you have, but if it's a rewards card this simply means more rewards.  If it's not a rewards card, pushing more transactions/dollars through it can be a positive thing and prompt the creditor to extend you a CLI at some point which indirectly can further aid in building your credit (and scores).

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I want just one bill so the card doesn't get too high. We had a lot of CC debt and I don't ever want to get back in that position but definitely want to keep building credit. We have 3 capitol one cards, we each a WM card, each an Amazon card, care credit, few store cards and a visa through our bank. All the cards are at zero except the care credit which we are paying off within the next month or two. 

[rmduhon]

I have Netflix set to hubby's Cabela's card to keep it active (mostly used during hunting season) and Pandora One to his Best Buy Visa. Our MyFico accounts are each on a different card and so is my Ancestry account. And I pay those shortly after the charge posts so that they don't report balances (we have other cards that do). Just giving you some ideas.

[Anonymous]

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@JMMD wrote:

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@Anonymous wrote:
As long as the bal is paid off completely by the due date no interest will be charged. You can also pay it off a few days before the statement date if you don't want a bal reported.

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Thank you!

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But if they dont report SOMETHING then it defeats the purpose of what you are trying to do.  Let it report, but pay it off by due date.

[rmduhon]

It won't matter if it doesn't report a balance because you'll still get another month of positive history. Assuming at least 1 card reports a balance.