Is it better to pay off credit cards or carry a balance?

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newbiecredit
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Is it better to pay off credit cards or carry a balance?

Postby newbiecredit » Tue Jun 19, 2012 12:35 am

Hi, I was just wondering. I only have a credit history of 1 year and 6 mos. I have 6 credit cards (Amex Green, Wells Fargo $2,700 cl, Wells Fargo secured $500 cl, Walmart $2,700 cl , Best Buy $1,000 cl and Capital One secured $350 limit).

I have been paying off my balance every month in full on all of my cards. I was just wondering if i should leave a little balance sometimes, is that better? Somebody told me it'll raise up my credit score faster than paying off everything in a month. Is that true?


MemberSince99
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Postby MemberSince99 » Tue Jun 19, 2012 6:01 am

Theoretically from a scoring perspective it's better to allow a small amount 1-4% to report on one card each month to show use of the card. You can then pay the balance immediately after it reports. If you're fighting for every point, that would be true.

DavidNY
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Postby DavidNY » Tue Jun 19, 2012 8:14 am

The statement closing date and reporting dates are independent.

Unless you check your credit reports daily you have no easy way to know when your balances are reported.

Pay it off.

newbiecredit
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Postby newbiecredit » Tue Jun 19, 2012 10:01 am

so it would be better to leave like a little balance on the card? coz I'm planning to buy a car end of this year of early next yr. my score right now is at 683. i want it at 700+ at least to get a good deal. thats why I'm checking if its better to pay in full every month or leave a little bal..

bmw1990Z
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Postby bmw1990Z » Tue Jun 19, 2012 10:21 am

from a personal standpoint, i feel like your score is lower than 700 because you have so many credit cards and such a short history.
Cards in my wallet:
-Citi Forward Card for College Students-July 2011
-American Express Platinum Delta Skymiles--July 2013

jeffysdad
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Postby jeffysdad » Tue Jun 19, 2012 10:49 am

Pay off the full balance every month by the due date. The rest will take care of itself.
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).

*All cards are registered with PriorityClub IDine program for 8 points/dollar at participating restaurants.

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FastSRT8
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Postby FastSRT8 » Tue Jun 19, 2012 11:16 am

Agreed. It is best to pay it all off. An occassional rolling of the balance if you are in a pinch is OK. Afterall, it is a credit card and that is one of it's intended purpose (short term bridge).
Carpe diem quam minimum credula postero!

newbiecredit
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Postby newbiecredit » Fri Jun 22, 2012 10:47 pm

yeah I'm paying everything all the time. i don't like carrying balances. i don't wanna think of any debt. ill just wait for my accounts to age. right now, I'm contented with what i have.. ill just wait and let my scores go higher



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