Current Events > Do you typically pay your full credit card balance?

(+) Yeah! (+)

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Or do you just pay the statement balance?
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I pay my statement balance on the day it's due, nothing else ever
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prince_leo posted...

I pay my statement balance on the day it's due, nothing else ever

Ah
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Full except for my 0% cards.
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I just constantly pay it like every 2-3 days and make sure I have a zero balance on the due date
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I pay for the full balance.
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I pay the full balance.

I hate having debt.
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Full but I never let my balance exceed a couple hundred

Statement balance for that cycle once a month
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I pay the full thing off. Not only is it better for your credit score, I don't get interest >_>
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I always pay it off. :o ALWAYS.
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KamenRiderBlade posted...

I pay the full balance.

I hate having debt.

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NeonOctopus posted...

I pay the full thing off. Not only is it better for your credit score, I don't get interest >_>

Neither of those things are true.
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I used to, but bills caught up too much and my paycheck isn't big enough to pay it off now. I put auto-payment of $20 every month on the card so I just make sure I have something in my bank account at all times.
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I pay minimum amount every time

Hinakuluiau posted...

NeonOctopus posted...

I pay the full thing off. Not only is it better for your credit score, I don't get interest >_>

Neither of those things are true.

Prove it.
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Hinakuluiau posted...

NeonOctopus posted...

I pay the full thing off. Not only is it better for your credit score, I don't get interest >_>

Neither of those things are true.

I don't know if the credit score part is true or not, but how is the interest part untrue?
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I have a 0% that i put some bigger shit on that i kept a balance on for a bit. All the others i pay off.
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Muffinz0rz posted...

I don't know if the credit score part is true or not, but how is the interest part untrue?

You only get charged interest if you're late. Your statement balance is what has the deadline, your overall balance is made up of more than just your statement balance.

For instance, look at OP's picture. If he pays $347.15 off, he won't get charged any interest. If he doesn't use his card for the rest of the month, then he'll have to pay $407.66 on his next statement. So long as both are met by the due date, then there's no interest.

NeonOctopus posted...

Prove it.

As long as you always pay the minimum your credit will not be permanently impacted. Utilization percentage has no history, as soon as you lower your percent of credit used your credit score goes back up.
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stevethewindow posted...

I pay minimum amount every time

Assuming you're not joking you know that works out so that even a tiny amount of debt will remain for a comically long amount of time?
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Muffinz0rz posted...

Hinakuluiau posted...

NeonOctopus posted...

I pay the full thing off. Not only is it better for your credit score, I don't get interest >_>

Neither of those things are true.

I don't know if the credit score part is true or not, but how is the interest part untrue?

Paying off the statement doesnt accrue interest for the remaining balance unless you are leaving balances from past statements.

Better for your credit score is debatable and depends on your total picture. Some people may benefit from a higher utilization while others it may be too high. I wouldn't worry about it though!
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Muffinz0rz posted...

Hinakuluiau posted...

NeonOctopus posted...

I pay the full thing off. Not only is it better for your credit score, I don't get interest >_>

Neither of those things are true.

I don't know if the credit score part is true or not, but how is the interest part untrue?

Not really. The only thing that really effects your credit score is you paying on time regularly. Be it the full balance or the statement balance.
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Hinakuluiau posted...

You only get charged interest if you're late. Your statement balance is what has the deadline, your overall balance is made up of more than just your statement balance.

For instance, look at OP's picture. If he pays $347.15 off, he won't get charged any interest. If he doesn't use his card for the rest of the month, then he'll have to pay $407.66 on his next statement. So long as both are met by the due date, then there's no interest.

So you're wrong in post #13 then

He says he pays the full thing off so there won't be any interest.
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pay the full thing off every month. No interest that way.
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I pay a few times a week. :\
Never cost me a dime and I use a cashback card.
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Muffinz0rz posted...

He says he pays the full thing off so there won't be any interest.

Yes, and I'm saying he's wrong because you don't need to pay the full thing off in order to get no interest.
It's like applying to your dream job that needs 3 years of experience in a related field and deciding that you should do 5 instead. Yes technically you are correct, but you might as well just do 3.
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Hinakuluiau posted...

It's like applying to your dream job that needs 3 years of experience in a related field and deciding that you should do 5 instead. Yes technically you are correct, but you might as well just do 3.

Or for a more relevant example, using TC's balance sheet he can get no interest paying 347.15 or 754.81
Why would you spend 300 more dollars to get the same result, unless you're shit with money can't guarantee you'll have next statement?

Statement

Full balance will never be paid until I either cancel the card or die
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Alkaloid posted...

Statement

Full balance will never be paid until I either cancel the card or die

Why?
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KarmaMuffin posted...

Hinakuluiau posted...

It's like applying to your dream job that needs 3 years of experience in a related field and deciding that you should do 5 instead. Yes technically you are correct, but you might as well just do 3.

Or for a more relevant example, using TC's balance sheet he can get no interest paying 347.15 or 754.81
Why would you spend 300 more dollars to get the same result, unless you're shit with money can't guarantee you'll have next statement?

If you have a low credit limit, it might matter. What if next month you needed to make a emergency large purchase and it sets you over your limit?
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LightHawKnight posted...

If you have a low credit limit, it might matter. What if next month you needed to make a emergency large purchase and it sets you over your limit?

That's a good point, I'm used to having a limit I'll never meet but that's true that others may have a low limit
Still, the initial point is arguing that paying in full is better for your credit score which is a myth

I still don't understand why people are confused about the basics of credit cards
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pinky0926 posted...

stevethewindow posted...

I pay minimum amount every time

Assuming you're not joking you know that works out so that even a tiny amount of debt will remain for a comically long amount of time?

I never pay any interest so it's cool

What about the thing where if you have a balance over 30% of your credit limit, it hurts your credit score. Is that true?
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krazychao5 posted...

I still don't understand why people are confused about the basics of credit cards

Because for some stupid reason it is never taught in school?
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NeonOctopus posted...

What about the thing where if you have a balance over 30% of your credit limit, it hurts your credit score. Is that true?

Mine took a hit because of utilization not that long ago, nothing huge. It was around a 3rd of my total available, so ya think theres some truth to that
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I pay the full balance so it goes all the way back to $0.00 on the last day of the month. I've never not done this any month. Technically I could let it float for another month without getting charged interest but I have never done that.
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Hinakuluiau posted...

Yes, and I'm saying he's wrong because you don't need to pay the full thing off in order to get no interest.

The thing is, he never said that he would. You kinda assumed it because of the way he worded it, which is understandable cause even I wondered if he thought that he would be charged interest. Nonetheless, that is what muffinorz is pointing out. He wasn't wrong when he said that he doesn't get interest when he pays off the full balance. It's unclear if he actually believes that he would be charged the interest or not.

At the end of the day, this whole argument is pointless unless the poster clarifies.
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NeonOctopus posted...

What about the thing where if you have a balance over 30% of your credit limit, it hurts your credit score. Is that true?

That's a bit more complicated. Basically the credit bureaus will take a snapshot of your credit at random times. 30% utilization is a good goal to try for because it's reasonable, but the lower it is the better your score will be. The problem is that you could carry a 2% all month that jumps up to 50% because you bought a new TV, and that just so happens to be the day they take the snapshot.
On the plus side, utilization is one of the smaller aspects of your credit score. Your length of credit, ability to pay on time (even minimum payments), and different forms of credit make up much larger parts of your score.

Twin3Turbo posted...

At the end of the day, this whole argument is pointless unless the poster clarifies.

True, but this is CE where every argument is pointless.
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i pay the full balance on the 1st of every month
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Hinakuluiau posted...

Muffinz0rz posted...

He says he pays the full thing off so there won't be any interest.

Yes, and I'm saying he's wrong because you don't need to pay the full thing off in order to get no interest.
It's like applying to your dream job that needs 3 years of experience in a related field and deciding that you should do 5 instead. Yes technically you are correct, but you might as well just do 3.

So he's wrong on a technicality, is what you're saying? Even though what he's doing is an extra precaution to help prevent late/missed payments?
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Neither
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In case people aren't clear:

Minimum balance is what your card requires you to pay in order to not default on a payment. You will be charged interest on the remaining balance.

Statement balance is the total sum of all your charges since the last statement. Paying the statement balance means you will pay zero interest on anything remaining--any remaining balance is technically due at the subsequent statement and is not incorporated into interest payments for the current statement period.

Full balance is the total sum of all your charges since the last statement PLUS any charges outstanding that will be due at the subsequent statement period.

Paying minimum is bad and only if you're in a bind. Statement balance is the "full amount" people refer to when paying off their card. Full balance is for people who don't know how credit cards work and are paying their balance off early in fear that somehow it is charged interest.

Technically keeping around ~10% credit utilization is best, so depending on your outstanding balance, paying statement balance is usually the best option. I won't judge people for paying full if managing finances is stressful and they'd rather just have the psychological feeling of zero balance.
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What about my situation? I just finally got a credit card first time ever. 0% apr for 18 months. My uncle said since I have no interest I should alternate between paying like half off one month and then most of it the following month until my interest actually starts talking effect.

Is that a good idea? He said it should help with my credit utilization value or something like that?
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Yes, and they upped the shit out of my credit card limit when i started doing so.
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mattnd2007 posted...

Is that a good idea? He said it should help with my credit utilization value or something like that?

when you put something on the card you're borrowing that money until you pay your balance. carrying over a balance has absolutely no advantage at all, from a credit score perspective.

sauce: https://www.experian.com/blogs/ask-experian/better-pay-off-credit-card-full-every-month-or-maintain-balance/
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mattnd2007 posted...

0% apr for 18 months.

This means for those 18 months, minimum balance payments are all that's "required", no interest will ever be charged.

Don't let the balance become too high that you can't pay it off once those 18 months expire. In fact, it's probably best to not do anything different than you normally would with a credit card. Only spend money you have/intended to spend. Nothing frivolous.

Credit utilization helps, but having a high balance close to your limit is bad. Zero balance is better than high balance from a "credit utilization" standpoint.

As long as you're making some sort of payment and stay within 10% of your card's limit and don't exceed your ability to pay it off before the promotional period.
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BlameAnesthesia posted...

Full balance is for people who don't know how credit cards work and are paying their balance off early in fear that somehow it is charged interest.

yeah maybe it's not necessary but what's wrong with paying the full thing? sounds like it's "bad" because you don't really have to. but so what?
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DragonGirlYuki posted...

KamenRiderBlade posted...

I pay the full balance.

I hate having debt.

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