AceH wrote:I just got a Secured Credit Card and just finished paying off my FIRST bill in FULL...0 BALANCE. Is it ok to OCCASIONALLY carry a balance for a couple of months...i.e. pay HALF the bill one month then pay in FULL the following month? I would NEVER pay only the minimum!
Congratulations on paying your bill in full! That's a great habit to get into.
As to your question, well, I guess it depends on what you mean by "ok." Is it OK with the issuer? Of course! They'll love that, they'll rake in lots of interest from you.
Is it OK for your credit report? Well, I guess that depends on the balance owed reported to the bureau versus your overall available credit. But be aware that a "carried" balance isn't reported any differently on your credit report than a paid-in-full balance. No one looking at your report could accurately determine whether you paid your balance in full or made payments (as long as they were on time and at least the minimum). Nor would such a consideration make any difference whatsoever on your credit score. And paying more than the minimum is no better for your credit than paying the minimum.
Is it "OK" with your personal finances to carry a balance? I would say almost definitely not. The only situation in which it would be "OK" to carry a balance on a credit card is if you had the money to pay the bill, but had it invested in some type of savings vehicle which was earning more interest than the credit card charges, after adjusting for tax implications. So if, for example, my credit card interest rate were 19.99%, I'd only consider it "OK" to carry a balance if I could instead invest that money (safely) at 28.97%.