First new credit card bill, pay in full?

[bd1980]

Have no debt to my name, am trying to get my credit up. I got a capital one card, used it at the store couple weeks ago for about 100.00, just got the bill. How much do I pay to help my credit the best. Would love to pay all but if it benefits me to only pay some, or majority, than I will. Thoughts?

[apandabear]

For scoring purposes, it's best to pay it off completely before you get the bill.

This is your only credit card, correct? What's the limit?

Capital One would have already reported a $100 balance. You should definitely pay it, and be prepared to pay it next month before you get your statement. Keep track of what you spend on it. Check the balance online if you can. And pay that before it reports.

[bd1980]

Limit is 1,000. I will pay it in full than, thank you. I am trying to get into a position for a home ASAP. Just recently have paid off all my old debt, only thing remaining is a student loan for another 3 yrs that gets paid on time every month. Ran a credit simulator and said if I got a CC then my score would improve. From what I've been reading here, I should get another one. I hate CC's, but if I have to play the game, then so be it. I only want it as a tool to improve my score, so I will start using the method of paying it as soon as I use it.

[ceejx]

To best help your score, you're going to pay twice. Ask them what day is your statement date, approximately 4 days before that pay off all but 9% ($90) of your CL ($1000) on your card. That $90 will report leaving you a utilization of 9% ... then you will have 25 days to pay off the remaining balance before your due date once the remaining $90 balance posts to your account, you're free to spend again. Wash, rince, repeat.

This will give you the max benefit of utilization while not accruing any finance charges. If you don't PIF the reamining balance before the DUE date then you will have to pay interest on the entire balance for that statement.

[Raiders1]

I have a capital one card also, just to rebuild my credit. My CL is only $500. They way I have it set up looks good on a credit report.

I don't purchase anything with it, but I have my gym membership automatically charged to the credit card on the 25th of the month for $29.99. I have Cap1 set up to bill on the 28th. And I go online the first week of the next moth and pay the $29.99. Every month my CR shows a balance of $29 (6% utilization) and every payment is on time. I've never paid intrest on the credit card. I do pay a $29 yearly fee, but $29 a year to improve credit is worth it.

[marty56]

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@seigex wrote:

To best help your score, you're going to pay twice. Ask them what day is your statement date, approximately 4 days before that pay off all but 9% ($90) of your CL ($1000) on your card. That $90 will report leaving you a utilization of 9% ... then you will have 25 days to pay off the remaining balance before your due date once the remaining $90 balance posts to your account, you're free to spend again. Wash, rince, repeat.

This will give you the max benefit of utilization while not accruing any finance charges. If you don't PIF the reamining balance before the DUE date then you will have to pay interest on the entire balance for that statement.

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+1

True Credit would be a good CMS since they  show report dates.