New CC !! Do you pay complete Balance when due ?

[tmac01]

I just received a new credit card and I just made like a $30 purchase on it. I have a $5,000 credit limit. When I get the statement I heard if you pay the complete amount due that it will hurt your score ? Is this true ?

[Revco]

Having a zero balance is not beneficial to your score. Typically riding a 3-8% balance is the best you can do. I pay off my higher interest CC's in full to stay away from rediculous finance charges...but I'll put my big purchases on my 10% APR card and let it ride for a bit.

Most CC companies will report whatever shows up on your statemnt, even if you pay it right away. If you want to lower the amount they report, you have to pay the balance before the statement period's end date.

Unless you're planning on applying for new credit, the day to day score really doesn't matter. It can be addicting to try to maximize your score...but seriously, use your credit and don't worry about it. If you're planning on applying for credit, just plan ahead about three months and get your balances way down to the ideal level by the time you apply.

[breathing_easier]

After my bad experience of paying outrageous interest rates to cc companies in the past, I don't want to pay them another penny. It's bad enough that I'm paying an annual fee. Therefore, what I do is make sure that a small balance is reporting as of the date that the cards report to the three CRAs (for me, as I've learned through monitoring PG/MCK and now PrivacySource, that date is on or about first day of the month) and then pay the balance in full before the due date. That way a balance reports to benefit FICO but I don't pay interest.

[rising_score]

After my bad experience of paying outrageous interest rates to cc companies in the past, I don't want to pay them another penny. It's bad enough that I'm paying an annual fee. Therefore, what I do is make sure that a small balance is reporting as of the date that the cards report to the three CRAs (for me, as I've learned through monitoring PG/MCK and now PrivacySource, that date is on or about first day of the month) and then pay the balance in full before the due date. That way a balance reports to benefit FICO but I don't pay interest.

I do this too. I learned that with HSBC, I have to pay down the total to a small balance by the end of the month.........and then I pay off the rest by the due date. I am always showing a balance of 9% or less of my credit limit. On my other cards, I just make sure I never spend more than 9% of the limit.