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/biz/ - Business & Finance

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577967 No.577967 [Reply] [Original]

I just received my first credit card bill.

The bill is for $100, statement of last month.

I owe a total of $200

I'm trying to spread my money out until I receive my giant check this January.

I have $300.

How much of the bill should I pay so that it looks good on my credit score?


Like I said, I dont want to pay it all off because I'm trying to spread these 300 to last for another month. But I;m not trying to get a shit cred score.

>> No.577972

You have to make at least the minimum payment.

>> No.577975

>>577972
This at the very minimum.

I don't know any other expenses you might need to spread the 300 out for the whole month.

>> No.577986

>>577972
>>577975
I heard the minimum looks bad, what if I pay 100 out of 200? Or would 50/200 be cool?

>> No.577991

>>577967
pay the full balance you dumbass. otherwise the credit card company is making interest off you. dont spend money you dont have

>> No.577993

>>577986
There are two factors involved: making payments on time and utilization.
If you miss a payment, that's bad (which is why you need to pay the minimum at least)
If you have high utilization, that's bad (you want it under 20% at least)

>> No.578001

WTF yo, I just re-read my statement and it said it isn't due until the first of january?

But it says that the money is from november to december spending?

How does this shit work?

>> No.578005

>>578001
Think of it like a utility bill. You accumulate charges over a period, then you're sent a bill and have a certain amount of time to pay.

>> No.578007

>>577993

This

Don't listen to people telling you to pay it off every month. They will never have a score high enough for a home loan... well, maybe a pit in like Michigan or something for like $55k.

>> No.578009

>>577967
>How much of the bill should I pay so that it looks good on my credit score?

all of it, you retard

>> No.578013

>>578007
That is a terrible way to build credit.

Pay your full balance every month, never incur interest on your credit card.

>> No.578014

>>578007
Paying it off every month gives you a lower utilization. That's good.

I pay in full every month and have a FICO around 800.

>> No.578027

>>578013

Derp

>>578014

Since you're at 800 you must a higher level of income. At least around 75k or so, right? There are different rules depending on which bracket you're in, thought that was common knowledge.

I think a lot of people would benefit from having credit karma accounts and playing with the simulator.

>> No.578033

>>578027
Income doesn't affect your FICO score. Income / debt-to-income is a separate metric that lenders will ask for.

>> No.578043

>>578033

I didn't mean to imply a calculation of income to debt ratio was done for fico. I meant that since you have a higher income level it is likely that you have much older accounts than OP, older and higher credit cards, years worth of utilities and etc.

>> No.578087

>>577967
Fuck, it's really simple.

1) The more UNUSED credit you have, the better for your credit score.
2) But you're USING your credit. So that hurts your score.
3) Also, I should note that depending on your rates, you are probably paying money for every month that you do not pay off that portion of that bill. So for example, if your APR is 15% and you only pay off $50, you still owe $250. In addition, you will owe interest for holding off for a month ($250 x 0.15/12 = $3.125). That comes out of your pocket, buddy.

In conclusion, pay it out ASAP. Also, only use your credit card in times when you fully expect to pay it off the next month.

Want a good fucking technique? Here it is: bump up your credit limit whenever possible - AND DON'T USE IT. Use one of those free credit monitoring sites and you'll see the effects. Trust me. U know I love you, right? <3

>> No.578094

>>577967
Also, that's a low limit. Are you a college student?

The most absolutely important thing that you should do is NEVER EVER EVER be late on a payment.

Or I will come after you. Out of loving concern for you, of course. <3

>> No.578105

>>578014
How much do you use it though?

>> No.578194
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578194

>>577991
underatterd post

>> No.578238

There seem to be a lot of conflicting comments..

I'm also interested in the answer to a good stable credit -- is it paying off the credit card balance each month or simply making timely monthly payments?

>> No.578248

Carrying a balance to improve your credit score is a pretty fucking retarded thing to do. Save your interest payments on things like cars and houses, not on everyday purchases.

>> No.578300

>>578238
'Having good credit' is literally just that; you're given a fixed amount (your card limit) and the payment terms, and you're judged based on how you treat that responsibility by being assigned a credit score.

There's no point in treating it like a highscore, as it's the bank's job to worry about that shit. All you need to do is just use it as responsibly and sensibly as you can

>> No.578323

>>577967
Here is what you should do, get a credit card with a higher limit so you can lower your utilization rate. The way it is calculated is how much you owe to how much credit is available to you. If you owe $200 and have a combined credit limit of $400, then you have a utilization rate of 50%. If you have a credit of $2000 then your utilization rate is 10% which isn't so bad. My advice, set aside the minimum payment and pay it to the CC. Then pay anything else that is due soon and is critical. Then whatever you have left pay it to the CC. Otherwise you will get fucked over if you have to pay somethng but don't. Missed payments are pretty bad too.

>> No.578341

>>578001
The bank makes money on every credit card transaction because they collect fees from your vendor.

If you only make the minimum payment, two bad things happen:
1) You pay interest.
2) Your credit score would not be as good as it would have been had you paid off the entire bill.

Get an account at credit karma. It's free. You'll thank me later.

>> No.578348

>>578027
I also pay off my credit card bill every time. My FICO is 800. Income is only 63k.

Also, my TransUnion is 765, which is Excellent according to CK.

>> No.578349

>>577991
>>577993
>>578009
>>578009
>>578014
>>578087
>>578094
>>578248
>>578341
OP, listen to these anons.

>> No.578444
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578444

>>578087
>Trust me. U know I love you, right? <3

>> No.578575

>>578341
Are you genuinely this retarded?
>>577967
OP what is your APR?
The minimum=interests is an old and outdated term that changes with respect to your debt. Now you say you owe $200. Now suppose that you have an APR of 35.99% and your CC uses the Daily Balance method, and suppose you owed that $200 throughout the month, then the interest charged will be $6.29 I kid you not. The minimum is usually $20,$25,$30,$35, or $50. So even at $20 you make progress. In order to break even with the interest rates, your APR would have to be 118%. I would say just pay the minimum first, pay off anything that needs to be paid off and then pay the rest of the CC balance. Don't fool yourself. A month of chaos compares nothing to years of stability.