Explain this to me-use simple words LOL

[SouthJamaica]

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@JMMD wrote:

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@SouthJamaica wrote:

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@JMMD wrote:

ok, so I want to use a CC to build credit. I want to use it for one expense per month and pay it off in full. As an example, say I set up my electric bill to auto-pay usiing the card. Then I set up auto-pay on the card so it just automatically gets paid in full each month.  How can I do this without having to pay interest on the card?

Thanks!

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Just the way you said.

But it depends on the credit card and on the utility as to how to set up the mechanics of it all. You might or might not be able to get the utility to hit up your credit card every month. You need to check it out.

Also bear in mind that utilities often charge a service charge for credit card payments.

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Thanks for the info. I don't need it to be a utility, I just chose that for my example. I will see what reoccuring bills we have that I can use. 

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Oh then that makes it easy. You could do it on netflix, or a gym, or some monthly internet thing, or a storage room, etc

[Anonymous]

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@JMMD wrote:

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I want just one bill so the card doesn't get too high. We had a lot of CC debt and I don't ever want to get back in that position but definitely want to keep building credit. We have 3 capitol one cards, we each a WM card, each an Amazon card, care credit, few store cards and a visa through our bank. All the cards are at zero except the care credit which we are paying off within the next month or two. 

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The card won't get too high if you pay off your purchases immediately.  How do you pay for your non-CC purchases?  Debit card?  Cash?  Instead, you simply use your CC and then use the cash or money from your checking account to pay off that CC charge.  Yes this adds probably 30 seconds to the process, but it allows you to show more CC usage while not increasing your credit card debt.

[JMMD]

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@rmduhon wrote:
I have Netflix set to hubby's Cabela's card to keep it active (mostly used during hunting season) and Pandora One to his Best Buy Visa. Our MyFico accounts are each on a different card and so is my Ancestry account. And I pay those shortly after the charge posts so that they don't report balances (we have other cards that do). Just giving you some ideas.

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Thanks! I appreciate the ideas!

[JMMD]

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@SouthJamaica wrote:

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@JMMD wrote:

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@SouthJamaica wrote:

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@JMMD wrote:

ok, so I want to use a CC to build credit. I want to use it for one expense per month and pay it off in full. As an example, say I set up my electric bill to auto-pay usiing the card. Then I set up auto-pay on the card so it just automatically gets paid in full each month.  How can I do this without having to pay interest on the card?

Thanks!

---

Just the way you said.

But it depends on the credit card and on the utility as to how to set up the mechanics of it all. You might or might not be able to get the utility to hit up your credit card every month. You need to check it out.

Also bear in mind that utilities often charge a service charge for credit card payments.

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Thanks for the info. I don't need it to be a utility, I just chose that for my example. I will see what reoccuring bills we have that I can use. 

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Oh then that makes it easy. You could do it on netflix, or a gym, or some monthly internet thing, or a storage room, etc

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Thanks! appreciate the help!

[JMMD]

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@Anonymous wrote:

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@JMMD wrote:

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I want just one bill so the card doesn't get too high. We had a lot of CC debt and I don't ever want to get back in that position but definitely want to keep building credit. We have 3 capitol one cards, we each a WM card, each an Amazon card, care credit, few store cards and a visa through our bank. All the cards are at zero except the care credit which we are paying off within the next month or two. 

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The card won't get too high if you pay off your purchases immediately.  How do you pay for your non-CC purchases?  Debit card?  Cash?  Instead, you simply use your CC and then use the cash or money from your checking account to pay off that CC charge.  Yes this adds probably 30 seconds to the process, but it allows you to show more CC usage while not increasing your credit card debt.

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We pay everything by debit card now so that would make sense to use the CC, then pay if off. 

[rmduhon]

Especially if it's a rewards card. Might as well make some money for paying bills.

[Anonymous]

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@JMMD wrote:

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We pay everything by debit card now so that would make sense to use the CC, then pay if off. 

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Exactly.

Debit cards and cash are basically the same thing to me and I use neither unless I absolutely have to.

I used a debit card (cash) only one time in 2016.  I was at a local county fair which did not take CCs... so I had to use my debit card at an ATM on site to withdraw $40.  It killed me to do so, but I did it... for the sake of my 4 year old at the time