Credit Card Balance Payment Question

[Anonymous]

I'm new to the credit game, so bear with me. There will be a few questions on here to save space. Please direct me to any thread that has already answered any of this, but I looked and didn't find anything exact.

Let's say I have a $1,000 limit on my card, my cycle ends on the 30th, and my due date is 25 days from then.

1. If I charge my card for $800 , but I pay off $600 of it in pieces before the end of the cycle - is my utilization at 80% or 20%?

2. Is paying off any of the debt before the end of the cycle that the charge appears on (like mentioned above) good, bad, or neutral for my credit (assuming I pay in full by the due date regardless of when I start)?

3. I've been told that it's a good idea to OCCASIONALLY make monthly payments vs. pay in full, especially for a larger item, as it shows that I can make payments over time as well as on the spot. Is this true? If so, how do you determine when it is a good idea to let monthly payments carry over?

Thanks!

[Brian_Earl_Spilner]

1. Your utilization is what's reported to the bureaus, so normally, that would be whatever balance you have at statement cut.

2. Doesnt affect your score, but it will create a pattern for the bank.

3. Banks keep track of your spending and payment patterns. Some, like synchrony, can get spooked if something changes drastically. E.g. if you have a $10k credit line but only spend $500 a month and pif, then all of a sudden have a $4k charge and start paying monthly, a bank like sync could balance chase you down or close the account thinking your ability to pay has changed. Even if all it was, was buying a new TV, which almost nobody PIFs.

[Meanmchine]

1)  20%

2)  Yes

3)  Yes  --- whenever you feel comfortable. There is no perfect time

Welcome aboard !!

[Anonymous]

Is that pattern necessarily bad, or does it really matter? ie will my credit score go up any faster or slower by doing it this way?

[Anonymous]

With 1 & 2 - is this a smart way of doing things, or should I wait and pay everything after the cycle? 

[Anonymous]

I wouldn't let an 80% utilization report if you can help it.

[SouthJamaica]

---

@Anonymous wrote:

I'm new to the credit game, so bear with me. There will be a few questions on here to save space. Please direct me to any thread that has already answered any of this, but I looked and didn't find anything exact.

Let's say I have a $1,000 limit on my card, my cycle ends on the 30th, and my due date is 25 days from then.

1. If I charge my card for $800 , but I pay off $600 of it in pieces before the end of the cycle - is my utilization at 80% or 20%?

20%

2. Is paying off any of the debt before the end of the cycle that the charge appears on (like mentioned above) good, bad, or neutral for my credit (assuming I pay in full by the due date regardless of when I start)?

Good

3. I've been told that it's a good idea to OCCASIONALLY make monthly payments vs. pay in full, especially for a larger item, as it shows that I can make payments over time as well as on the spot. Is this true?

No it's completely false.

If so, how do you determine when it is a good idea to let monthly payments carry over?

The best time to do it is NEVER.

Thanks!

---

[HeavenOhio]

Always pay your statement balance in full if you can help it. Paying credit card balances over time indicates at least a slight risk of default — or a pretty big one if you're only paying the minimum.

Most banks really prefer pay-in-full behavior. Discover kind of likes people who revolve balances, but they're an exception. They're willing to take on the added risk in order to hopefully collect some interest. Carrying a balance and paying interest certainly aren't requirements to have their card, though.

If you absolutely have to revolve a balance, make sure you're making at least three times the minimum payment. Better yet, determine a schedule to have the balance paid off, and stick to it.

[ChessChik47]

---

@Anonymous wrote:

I'm new to the credit game, so bear with me. There will be a few questions on here to save space. Please direct me to any thread that has already answered any of this, but I looked and didn't find anything exact.

Let's say I have a $1,000 limit on my card, my cycle ends on the 30th, and my due date is 25 days from then.

1. If I charge my card for $800 , but I pay off $600 of it in pieces before the end of the cycle - is my utilization at 80% or 20%?

2. Is paying off any of the debt before the end of the cycle that the charge appears on (like mentioned above) good, bad, or neutral for my credit (assuming I pay in full by the due date regardless of when I start)?

3. I've been told that it's a good idea to OCCASIONALLY make monthly payments vs. pay in full, especially for a larger item, as it shows that I can make payments over time as well as on the spot. Is this true? If so, how do you determine when it is a good idea to let monthly payments carry over?

Thanks!

---

Welcome to the forums!  You've received good answers to your questions, I would just add that for #3, I would only revolve a balance if I was doing it on a 0% APR for purchases or balance transfers and would pay wellll over the minimum amount due.   That's how I determine if it's a good idea to revolve a balance.

[Anonymous]

Someone mentioned doing it for TVs since they're expensive and hard to PIF - I'm assuming that's where the benefits of multiple cards comes in? Using a Best Buy card for that would make sense due to the 5% (or whatever it is) discount and they ususally allow no interest APR for a bit on larger items, knowing it won't easily be paid in full? Whereas if I used a general purpose card and just didn't pay it in full, that would look suspicious to that bank?