Money Tips: Should I pay my credit card balance in full every month?

Posted On: September 12, 2006

Guest: froggger
Post subject: Should I pay my credit card balance in full every month?
Posted: Tue Sep 12, 2006 11:50 am

I just got approved for two credit cards! Low limit but I’ll take it happily. My question is when the bill comes do I pay it off completely or do I pay alittle above minimum? What will be better for my score?

Another question, on my credit report, I have a collection from an apartment where I resided a year and 1/2 ago. I broke the lease to buy my house, I paid the collection as soon as I found out about it but it doesn’t show that I paid it. What do I do? Will it hurt more to leave it alone or have it corrected? I have the letter confirming Paid In Full. Any help would be great. THX

Guest: rapjunkie
Credit Expert (100+ Posts)
Posted: Tue Sep 12, 2006 12:39 pm

If you can pay the bill in full when you get it, that would be the best move for you. You would save on interest and would keep you utilization ratio low (balance compared to credit line), which helps your score.

As far as the collection, forward copies of the Paid In Full letter to the credit bureaus and request that they update the information to show that the debt was paid.

Guest: mouse
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Tue Sep 12, 2006 2:15 pm

froggger wrote:
I just got approved for two credit cards! Low limit but I’ll take it happily. My question is when the bill comes do I pay it off completely or do I pay alittle above minimum? What will be better for my score?

Another question, on my credit report, I have a collection from an apartment where I resided a year and 1/2 ago. I broke the lease to buy my house, I paid the collection as soon as I found out about it but it doesn’t show that I paid it. What do I do? Will it hurt more to leave it alone or have it corrected? I have the letter confirming Paid In Full. Any help would be great. THX

Don’t pay interest because you “THINK” it will help your score

ALL IT WILL DO IS SUCK MORE MONEY OUT OF YOUR CHECKING ACCOUNT