topic Re: When Should My Cards Be Paid Off? in Credit Cards

When Should My Cards Be Paid Off?

Anonymous — Mon, 27 Dec 2010 06:23:51 GMT

After scouring this forum I haven't really figured out the best way to manage my credit cards.

A few people say leave a balance of 5%-8% of your CL on your card from month to month while some say pay the entire balance off?

Which is the better method in regards to aiding your FICO score. If I pay the entire balance off, when should it be paid by, I am confused as to when the balance actually is reported to the Credit Bureau's.

Re: When Should My Cards Be Paid Off?

trumpet-205 — Mon, 27 Dec 2010 06:30:56 GMT

When people say leave a balance to report, they mean pay most of what you owe before billing cycle end. Always pay in full right after the statement.

Example -

I owe $50 dollars on my credit card. My billing cycle ends 3 days afterward. I pay $45 dollars before billing cycle ends, so that my balance (what I owe) on my statement is $5 instead. Whatever balance is on your statement is reported to CRA, with the exception of few banks.

Re: When Should My Cards Be Paid Off?

clocktick — Mon, 27 Dec 2010 15:44:28 GMT

Yes, exactly. The entire balance is still paid off but just in 2 payments. Everything still ends up paid in full without any interest.

Re: When Should My Cards Be Paid Off?

Smug — Mon, 27 Dec 2010 16:03:50 GMT

On each card? Or just one card? All Cards?

Re: When Should My Cards Be Paid Off?

clocktick — Mon, 27 Dec 2010 16:16:13 GMT

Less than half.

Re: When Should My Cards Be Paid Off?

haulingthescoreup — Wed, 29 Dec 2010 20:11:03 GMT

@Smug wrote:
On each card? Or just one card? All Cards?

Ideally on just one card. Max, fewer than half of your open CC's.

If you have multiple open installment/ mortgage accounts, you should let as few CC's report a balance as possible.

People with student loans, one per semester, get nailed on "too many accounts with balances" due to the way their SL's report.

Re: When Should My Cards Be Paid Off?

Smug — Wed, 29 Dec 2010 20:13:33 GMT

Thank you