CC asked in Business & FinanceCredit · 2 months ago

Do you have to pay your credit card off every month?

I have an secured credit card because I am trying to build credit.  I normally pay it off every month because I usually only put $50 on it because I know I can pay it off at the end of the month. My books for school are a more expensive than I anticipated because everything is online and you need access codes that cost $75-$100 by themselves and I pay for everything out of pocket. Is it bad to put $400 on my card? I have a $500 limit and I can pay it off in about 2 months. 

Update:

I‘m not being charged any interest right now. The credit card had a deal going on where the first 6 months are interest free. 

9 Answers

Relevance
  • Dan B
    Lv 7
    1 month ago

    Your credit profile, as far as your credit card impacts it, is calculated on the statement closing date.  You want to pay as much of your debt off as possible before the statement closing date.  Do you have to pay it off every month?  No.  But the longer you carry a high debt, the longer and more impact it will have on your credit profile.

  • Amy
    Lv 7
    2 months ago

    It's fine to carry a balance if you can pay it off (in addition to any new charges) before the 0% interest period expires. 

    Just make sure your debt doesn't get out of control and leave you with a $500 balance at the moment you start owing interest.

    Normally you shouldn't spend more than you earn, so you should always be able to pay in full. And staying far below your credit limit means you have a source of money available in an emergency.

  • 2 months ago

    It's BETTER, but not absolutely necessary. The more often you pay off the monthly balance in full the better your record for payment will be. It means you can AFFORD the credit extended to you. That's worth a lot in the credit world. It takes a longer time to build credit with a secured card. So the faster you do build it up, the better it will be for you when it's time to move on to an unsecured one. 

  • 2 months ago

    Yes.   ALWAYS !

  • How do you think about the answers? You can sign in to vote the answer.
  • Anonymous
    2 months ago

    You don't have to but if you are incurring interest, you SHOULD.

    Don't worry about using $400. While 80% usage is bad its only bad for a month and then it goes away with no long lasting effect.

    I only use cards for cash back and I pay the last day possible unless its a really small balance in which I often pay it early just to get it out of the way.

    For example, I owed amex $5.16 but it was not due until mid Sept but I just paid it yesterday because it was such a small amount. I owed fidelity visa $1272. Its due 9/1 and it will be paid on 9/1, the last day possible so I can earn a little interest on it in the meantime. That $1272 is over 10% of my available limit on that card and my scores all dropped about 4 points because of it. But It will pop right back shortly after I make the payment in Sept so its not a big concern to me. That card has a low limit, just $12,500. I think I only put $25k in income down. Im sure they would give me more if I asked but it would require a hard pull and that would ding my score for about a year. And I rarely spend even a few hundred. I prepay some things like power, sewer & water because the cash back I get exceeds the interest I would earn. Plus I don't have to worry about paying them for another 4-6 months.

  • A
    Lv 7
    2 months ago

    If you do not pay it off you are going to have interest/finance charges added to your balance.  Not the best scenario for building credit but you have to do what you have to do

  • Sandy
    Lv 7
    2 months ago

    American Express is the only card I can think of that expects you to pay the full balance each month. all other credit cards only expect a fraction of the balance. watch those interest rates though. stay in the single digits.

  • Tavy
    Lv 7
    2 months ago

    No you don't have to, this is the reason why people have them.

  • 2 months ago

    Only if you want to avoid having to pay ridiculously expensive credit card interest.  If you happen to enjoy paying ridiculously expensive credit card interest then by all means carry a balance.  

Still have questions? Get your answers by asking now.