|06-25-2012, 10:12 PM||#21|
The Mactan Warrior
Join Date: Apr 2009
Location: Bronx, NY
Quoted: 0 Post(s)Rep Power: 24
Total Points: 21,587,479,965,243.14
It would seem like paying stuff off full right away wouldn't be good for your credit, in reality it is good. It doesn't matter if you pay it off right away, what does matter is that you pay it ON time. Mak's credit score probably went up because of the amount of time that he has established his credit, not because he kept a balance on it. Wether you pay it off right away or not, it's still considered a revolving debt, which is a factor on your score.
The longer you have credit under your name and the better you keep your debt under control, the more your bank will lend and extend your credit. Subsequently your credit score will also go up. I've never asked my banks to extend me credit but like many cards, mine started at $4000 limit. Now both of my cards are around $18,000 limit. I've actually had to call my bank and credit union to stop extending me credit.
My score's been around 800+. I pay my credit cards off as soon as the balance is reflected on it so that I don't have to pay the interest.
I rarely pay anything with cash. If you guys ever take a class like the Dave Ramsey class or similar, they really harp on the fact that you should pay everything in cash. But I think that goes too much into the extremes. You can still use credit cards and pay them off right away before interest accrues on it. I think it's more convenient that way since I do online banking on a regular basis. I hate carrying cash, it's more convenient to transfer the money from my checking/savings to my credit card.
Instead of using debit cards or checks to pay off my bills, I use my credit cards to pay them. All of it. I really don't care about the credit card points or rewards, but at the end of the year I funnel so much bills through my cards that I get about $500 cash back to use for Christmas. That's without having to pay any interest, because like I said I pay everything off before it builds interest.
Here's an excerpt from one of my credit monitoring from Experian:
|06-25-2012, 10:46 PM||#22|
Join Date: Oct 2007
Quoted: 12 Post(s)Rep Power: 300
Total Points: 127,683,469,429,619,552.00
Last I checked was about a year ago when I bought my house. It was like 786. I imagine it's better now since I've been making consistent and timely mortgage payments.
|06-26-2012, 06:43 AM||#25|
Join Date: Mar 2010
Location: Hunters Point CA
Quoted: 0 Post(s)Rep Power: 52
Total Points: 1,455,545,480,743.74
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|credit?, good, guys|