Haloman800 wrote:@Robrus, so you're saying to 1. Find out which day statement prints 2. Pay of all but $10-20 and 3. Pay the remainder ($10-20) before the due date?
If my statement printed on the 15th and the bill was due on the 20th & my balance was $100, I should pay $80 on the 15th and $20 on the 19th?
^^That would be more efficient at building credit than paying it off 100% as soon as it was charged?
Thank you very much for your helpful information.
If your statement cuts on the 15th, and is due on the 6th of the following month, he's saying "pay $80 on or before the 14th" and pay the statement balance before the due date. Also, note that your due date is fixed, but the date the statement is generated can change, depending on the length of the month.
The only reason to pay it off as soon as you make charges would be if it's a super lousy card with no interest free grace period, or if the credit limit is very low, and you can spend that much easily.
Remember that other people only see what the credit card company reports to the credit bureaus. That's almost always the statement balance. Another creditor can't see that you spent $500, paid it all off the next day, spent $30,000 the day after that, and paid $29,990 the day after that, leaving a balance when the statement cuts of $10. They just see the $10. Your credit card company can see that, and they may consider that when deciding to give you a credit limit increase, or if you apply for a different card or loan with them.
Really, though, if you're not planning to apply for another loan or card, just use the card, making sure you can pay the bill in full, and pay it when you get the statement. When you get ready for another application, then you can worry about utilization to increase your score.