topic Re: Rebuilding with new CC in Rebuilding Your Credit

Rebuilding with new CC

Anonymous — Sun, 05 Oct 2008 14:07:03 GMT

OK, so I got a new CC and it's on its way. I only plan to buy a tank of gas with it every month or two. My question is this. Do I charge on the card and pay it off within the same day or two, or do I wait until closer to the due date so that the CC can report the $50ish balance to the CRAs. I've heard both lines of advice but I'm thinking the 2nd way is correct. Otherwise the CC will likely only ever report a $0 balance to the CRAs, which basically shows that I'm not even using it, right?

Re: Rebuilding with new CC

atl — Sun, 05 Oct 2008 17:05:35 GMT

Buy stuff, then pay more than the minimum payment. Actually, it doesnt even matter if you pay the minimum or more than the minimum, of course this is true if your balance isnt so high that your CC rates are taking over, and by paying the minimum, you are only getting rid of interest. That shouldnt be the case with simply buying gas.

So yeah, just wait till your statement comes in, then pay what you want on it.

Re: Rebuilding with new CC

llecs — Sun, 05 Oct 2008 17:09:09 GMT

@Anonymous wrote:
OK, so I got a new CC and it's on its way. I only plan to buy a tank of gas with it every month or two. My question is this. Do I charge on the card and pay it off within the same day or two, or do I wait until closer to the due date so that the CC can report the $50ish balance to the CRAs. I've heard both lines of advice but I'm thinking the 2nd way is correct. Otherwise the CC will likely only ever report a $0 balance to the CRAs, which basically shows that I'm not even using it, right?

When you pay doesn't matter as mentioned. Make sure less than 10% reports. Also, many CCs will report the "high balance" and is in no relation to the statement balance.