Don't pay it all off?

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3 posts
ALZYMER
 
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Joined: Sat Mar 08, 2014 1:45 pm
Location: Fernandina Beach

Don't pay it all off?

Postby ALZYMER » Sat Mar 08, 2014 1:53 pm

I have a secured Cap One cc and am trying to improve my credit score. I've been paying it off every month but have been told to leave a few dollars outstanding every month to better my score. Is this true as it is hard for me not to pay it all off every month .


Obi-dan
Centurion Member
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Posts: 190
Joined: Fri Aug 02, 2013 2:35 pm
Location: Houston, TX

Postby Obi-dan » Mon Mar 10, 2014 5:58 pm

Generally you want to carry some balance (5-10%) for optimal scoring in the credit utilization section. However, I personally feel that the boost in your credit score is not worth the interest paid, especially if you have to pay an annual fee on the card. Just pay it off in my opinion.
Cards:
Chase Sapphire Preferred
Marriott Rewards
Citi Hilton
Barclay Arrival
AMEX BCE (member since 95)
Chase Freedom
Discover It
Wells Fargo Platinum
Barclaycard (Apple)
Local Credit Union Visa (buy local!)


FICO Scores:
TU: 824 (Aug 2014)
Experian: 789 (Aug 2014)
Equifax: 807 (Aug 2014)

MemberSince99
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Joined: Sun May 20, 2012 4:35 pm
Location: WI

Postby MemberSince99 » Mon Mar 10, 2014 6:01 pm

You can get the score WITHOUT paying the interest IF you do the following: BEFORE the statement cuts, pay it down to 1-4%, let the 1-4% report, THEN immediately pay the bill when the statement cuts.


Make an extra payment get the best of both worlds. Not that hard.



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