topic Re: I am still new with using my CC in Credit Cards

I am still new with using my CC

Anonymous — Fri, 20 Sep 2013 01:05:30 GMT

So far when ever I use my cc I just pay it in full when I get paid. So my question is, When do I actually have to pay my bill? When the statement comes? Or 21 days from my first purchase? I have a 21 day grace period that is why I said 21 days. My other question is I have 0% APR till 2014 so do that mean if I make a purchase and just pay the minimal payment I will not collect interest or what?

Re: I am still with using my CC

myjourney — Fri, 20 Sep 2013 00:59:58 GMT

@jetlife_reeves wrote:
So far when ever I use my cc I just pay it in full when I get paid. So my question is, When do I actually have to pay my bill? When the statement comes? Or 21 days from my first purchase? I have a 21 day grace period that is why I said 21 days. My other question is I have 0% APR till 2014 so do that mean if I make a purchase and just pay the minimal payment I will not collect interest or what?

Welcome to the forum

Look at your statement and it will say what date it's due

DUE DATE

Re: I am still new with using my CC

djc1puno — Fri, 20 Sep 2013 01:17:13 GMT

+1@mj yes no apr on purchases til april...once that ellapses you will be chared w interest based on your balance then

Re: I am still with using my CC

Anonymous — Fri, 20 Sep 2013 01:26:30 GMT

Thanks, trying to learn. But so my payment is not due until my statement comes in? I'm starting to get it now thanks.

Re: I am still with using my CC

myjourney — Fri, 20 Sep 2013 01:30:57 GMT

@jetlife_reeves wrote:
Thanks, trying to learn. But so my payment is not due until my statement comes in? I'm starting to get it now thanks.

Correct

you can pay early if you like but yes payment is not due until statement cuts

Re: I am still new with using my CC

Anonymous — Fri, 20 Sep 2013 01:35:11 GMT

Awesome so I can go out and buy something big and just make minimal payments on it until it's paid off. Will it hurt my score by just making minimal payments?

Re: I am still new with using my CC

myjourney — Fri, 20 Sep 2013 01:40:53 GMT

@jetlife_reeves wrote:
Awesome so I can go out and buy something big and just make minimal payments on it until it's paid off. Will it hurt my score by just making minimal payments?

Since you have a 0% in place yes you can but yes you may also see a score drop. However as you pay it down scores will recover

Re: I am still new with using my CC

youngandcreditwrthy — Fri, 20 Sep 2013 01:41:19 GMT

Be sure to pay before the 0% ends.
And to maximize your score, keep your credit utilization at 9%.
Example:
Say your limit is $1000 and you max it out every month, but pay it in full...
Don't let the statement have a balance >$90 on it (that's 9%) this will help your score.

Re: I am still new with using my CC

lithium78 — Fri, 20 Sep 2013 01:45:08 GMT

@jetlife_reeves wrote:
Awesome so I can go out and buy something big and just make minimal payments on it until it's paid off. Will it hurt my score by just making minimal payments?

There are generally two reasons why making minimum payments is not the best idea:

1. ) If you make minimum payments, you have to pay interest on what you borrowed. That pretty much negates the value of any rewards you would get from your card, plus that's money out of your pocket that could go toward something nice for yourself.

2.) Part of your FICO is based on your utilization of credit. Generally, you want to only have one credit card report a balance of between 1% - 9% of your credit limit (but pay it off before the statement date so you don't get charged interest). When you have high utilization reporting on your credit cards, they gets concerned that you are overextending yourself and they lower your FICO.

Re: I am still new with using my CC

Anonymous — Fri, 20 Sep 2013 02:30:22 GMT

@lithium78 wrote:
@jetlife_reeves wrote:
Awesome so I can go out and buy something big and just make minimal payments on it until it's paid off. Will it hurt my score by just making minimal payments?
There are generally two reasons why making minimum payments is not the best idea:

1. ) If you make minimum payments, you have to pay interest on what you borrowed. That pretty much negates the value of any rewards you would get from your card, plus that's money out of your pocket that could go toward something nice for yourself.

2.) Part of your FICO is based on your utilization of credit. Generally, you want to only have one credit card report a balance of between 1% - 9% of your credit limit (but pay it off before the statement date so you don't get charged interest). When you have high utilization reporting on your credit cards, they gets concerned that you are overextending yourself and they lower your FICO.

While 1) doesn't apply now (because of the 0% APR) for many paying minimums isn't a great habit to get into, especially, as others mentioned, near the end of the 0 APR promo you want to make sure you can pay it all down.

But, if you have enough self-discipline, and a relatively high rate of return on some semi-liquid investment, it does make sense to pay the minimum for the 0% period.