Credit

Question: When to pay my credit card bill?

(Posted by: Proud Mami on 2010-03-20 14:15:01)

I am currently trying to build my credit and have a capital one credit card. I only buy things with the credit card when I have the money for it on my debit card or cash. And a few days later I will pay it off again. My question is, by paying it off immediately, a few days after the transaction, is this building my credit or do I have to wait till the end of my bill cycle to pay it off??? Do I have to pay it off once for all the transactions, or can I just pay it transaction by transaction? I& #039;m just scared that I may forget about it and then have bad credit or have to pay interest. But my goal is to build credit so if what I& #039;m doing is not the right way, then please let me know. Another question, I would like to buy a newer car in the future and I don& #039;t have any co- signers and I realize that it might be too early for me, seen that I just started to build credit. But I went to a car dealership to see where I& #039;m standing and if I already qualify for something. And he said I don& #039;t exist. He double checked my SSN, but he cannot find me, I do not exist. I& #039;m a little offended by this, since I do exist! I have a cell phone in my name, a credit card in my name. How on earth can I not exist in the system??? Should I try another car dealership? Brings me to my third and last question, how long should I keep/ use my credit card before it will boost my score? After how many months of usage will it reflect on my report. And, once I get the score I like, can I just stop using my credit card or should I close it, or do I need to keep using it to remain that credit score or should I open another one?

Posted by: Judy on 2010-03-20, 14:22:59

Pay in full when you get the bill in the mail. Top credit score can easily be achieved this way. I have almost a perfect 850 score and have never carried a balance in my life or paid interest. Never spend more than 30% of your limit at any time during the month. If you find yourself doing this - then go ahead and make and extra payment in the middle of the cycle. If you have had the credit card for at least 2 months this should show up on your credit reports. A cell phone will not show up on your reports. Get your reports for free today at annual credit report .com - don 't pay for anything. Don 't get your score - it won 't help you a bit. One thing that is good to know - "new credit " actually reduces your rating for the first 6 months. Do not ever close your oldest credit card account It will delete part of your "length of credit history " which is 15% of your rating. Continue using your card for things you need like food or gas. It may help you keep track of your spending. A second card is recommended, but not in your case since you plan on purchasing a car soon. /

Posted by: Mo on 2010-03-20, 15:16:37

First thing...I applaud you for being so responsible and wanting to pay the card asap! Here is the best way to pay things off to achieve the optimal FICO score. Get your most current statement and find your "statement end date ". That is the date that your credit card company reports to the 3 reporting agencies. It gets a little confusing, but I 'm going to explain this as best as I can. The FICO scoring system likes to see *some* use of your credit card(s). The golden # seems to be around 7% of your total credit card limits reporting. So, say for instance you have 2 credit cards with a $500 limit on each. Pay one in full each month *before* the statement cut date, and pay the other down to $70. on the statement cut date. The cut date is long before the due date, so you will still pay no interest. A couple days after you know the statement has been cut & mailed, go online & pay the remaining $70. This will show that you are using your card, but using it responsibly. I actually have, in my positive column on my FICO report, that it is a positive thing that I am using my credit responsibly. Copied from my actual report...on the positive side of the scale- You 've shown recent use of credit cards. Your FICO score evaluates your mix of credit cards, installment loans and mortgages. People who demonstrate responsible use of different types of credit are generally less risky to lenders. You helped your FICO score by showing recent use of a credit card. To figure your utilization on the cards, divide your current balance by the total credit limits & you can figure out if you are near that 7% (or .07) number. One or 2 points in either direction are ok too. Next, have you gotten copies of your credit reports lately? If not, you can get one of each of the 3, free by law, here ----- > annualcreditreport.com That is the ONLY site to give you your free reports directly from Equifax, Trans Union & Experian. Do NOT pay for the scores. The TU & EX scores are NOT FICO scores and are meaningless. You can get your true FICO 's at myFICO.com You can get your Equifax and Trans Union scores there. Experian stopped allowing us to purchase our FICO scores last February. The only place to get an EX FICO is from a loan officer 's credit pull. If you want any more info on scores & reports, visit the community forums on the myFICO website. They have the best information, and the sight content is highly monitored for accuracy & the site is also owned by Fair Isaac, the developer of the FICO scoring system. That place got me in a position to be able to buy my house 3 years ago! Lastly, for any loan for a car or other credit card, I highly recommend joining a Credit Union. CU 's are owned by the members, not some huge corporation. They give better loans & credit cards. Better rates & limits. Check the CU 's in your town & open a checking/ savings & after several months, go in & talk to them about that car loan or CC that you want. Trust me, Capital One is not the best one out there by a LONG SHOT!! Had one & dumped them!

Posted by: StephenWeinstein on 2010-03-20, 15:54:02

As long as you are paying for all the transactions before the bill is due, you can do it whenever you want. One transaction at a time, or an entire month at one time, does not matter (they only report monthly totals anyone). Paying it immediately builds credit. Waiting for the end of the cycle to end is not necessary; my score was built (in part) by a card that I did not even use. Cell phones that you pay do not go into the system. Credit cards do, but not instantly. It can take a few months. If you want to keep the score, then you should keep the card open forever. It it is closed (by you or the bank) then you will eventually lose the points that you got from it. If you close it and open another one, then your score may drop, because a closed account and a new account do not give you as high a score as an old, open account.

Posted by: Classy Granny on 2010-03-20, 16:33:53

I wouldn 't be paying several times a month when ever you have a transaction. That won 't help you build credit and the chance for error is great. Pay once a month as soon after your statement arrives in the mail as you can. Just make sure it reaches them by the due date

Posted by: jan on 2010-03-23, 16:00:39

If you are looking for the free credit report usa national site, check out this site Free-Credit-Report-National.com/ Here you can check your 3-in-1 Report from all three credit reporting agencies and your credit score rating. Hope this help,