I was approved for $800 limit last month. I spent $46 in gas to get it started.
I got my first "online" bill today and it said balance due is $25.
I'm still a little unsure about the consequences of how you pay your cc bill reflects your scores.
In the past, I have always charged and then paid in full when the bill come. My thought process was to just prove that I can charge and afford to pay in full (usually weeks before the bill is due).
However, I started wondering if you are maybe suppose to leave a small balance on the card instead in order for the cc company to make a profit and "like" your business with them? Is it easier to get an increase down the line if you pay in full each time or leave a small balance? What does it do for your score?
Thanks in advance.
Since I don't like paying interest, I usually PIF. If there are 0% APR promos I do my best to take advantage. With GE, I have carried a sm bal and PIF , heavy usage and little usage it hasn't mattered on my requests for CLI's I have gotten them every 3-4 mos.
YMMV
YMMV
At the moment, I only have 2 cards...Orchard and now Discover. Orchard has the small $300 limit and is a 0 balance. I probably won't use it much...maybe once every 4-5 months just to keep it active and show them I still want it.
I do plan on asking for an increase on the Orchard once it transfers over to Captial One (since they refuse to give me one now). I would also like to get an increase (hopefully in about 6 months???) on the Discover if possible.
I also plan on apply for another card in about 6 months as well to keep the credit going. At that point, I will have NOTHING bad on my credit.
So...pay the $25 this time and pay the balance in full next statement OR PIF this time? Which will help me the most?
On getting an increase with GE? Keeping your reports clean, and IMO if you can, PIF. GE has extremely high interest if you must keep a balance - make sure it's small.
I assume GE is the Walmart Discover? I believe the interest was around 22%.
I only charged $46.75. So the bill now is $25 and if I only paid that amount, then my balance would be less than the $25 minimum payment the following month-therefore paying it in full then.
I just didn't know if they like you to keep a "small" balance on there so that they can make money off of you in order to give you an increase later.
I guess I'm not getting it in my head why "any" company would like to have you as a customer if they didn't make "something" off of you. Sorry, just trying to understand. Not doubting anyone and just want to do the right thing in order to a) get a future increase and b) make my credit score go up.
Thanks in advance for all of your help.
@audia4 wrote:I was approved for $800 limit last month. I spent $46 in gas to get it started.
I got my first "online" bill today and it said balance due is $25.
I'm still a little unsure about the consequences of how you pay your cc bill reflects your scores.
In the past, I have always charged and then paid in full when the bill come. My thought process was to just prove that I can charge and afford to pay in full (usually weeks before the bill is due).
However, I started wondering if you are maybe suppose to leave a small balance on the card instead in order for the cc company to make a profit and "like" your business with them? Is it easier to get an increase down the line if you pay in full each time or leave a small balance? What does it do for your score?
Thanks in advance.
If you do not have to pay interest I would not.
@LS2982 wrote:
If you do not have to pay interest I would not.
Interest is around 22%. I don't mind paying the interest, it's not like it's going to be a lot. I just want to increase my scores and get a future increase. So actually paying interest doesn't bother me. It's just what's "best" to do if you know what I mean.