- Centurion Member
- Posts: 235
- Joined: Tue Mar 12, 2013 10:10 pm
- Location: United States
It depends on what you're trying to do. If you want to maximize your credit scores, paying off before it reports will probably be helpful. I make sure all my cards show a zero balance on my credit report before big financed purchases like property. If you're just trying to avoid interest, then as long as you pay all purchases off within the grace period, you'll be fine. I tend to take a "pay as I go" approach when not going for a major financed purchase. I charge my groceries, cell phone bill, a dinner, or whatever, and pay them off within the week, but because I'm making regular charges on my cards, it never usually hits zero, officially, as far as my credit report goes. Doing a monthly automatic pay-off would have the same effect.
One other thing you have to consider is whether you have the discipline to not over-spend and dig yourself into debt. If you think you might over-spend, you could make a rule to pay off charges immediately and not charge once you have no more spending cash. I did that for about a year to "right" myself on how much I really had to spend, while still getting the rewards, when I first got a real job. I still do it when I go on vacation and might be tempted to "treat myself." I save up for the vacation, put the money in my checking account, and pay off my purchases as I go, so that it's always visible just how much I have left to spend...no matter how tempting that 5 star dinner might sound...
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