credit card question

[Savage_Messiah]

is it "better" credit wise to make payments in one lump sum right before the due date, or to pay a bit each week every week? Or does it not matter?

[slasherbarb]

i think as long as you pay the minimum everytime you will be fine...but every month they add interest...

[BonzoHansen]

It depends on how the CC company calculates interest. By end of period balance, average daily balance, etc. Read up, it should be on the back of your bill.

Now, if you owe and are trying to dig out a bit, it can't hurt to pay weekly. That way you paid it and didn't spend the $$ elsewhere.

[Tsar]

i just pay it off every month, well besides that one time when i had to pay of 3k :lol:

[WildBillyT]

In my opinion-

Pay off your entire balance each month. Every time. If you carry a balance they will charge you interest.

Some cards will even charge you interest on all new charges as well- not just those in the month you didn't pay it off. So if you carry a balance in January and pay it all off in February, you pay interest on both Jan and Feb's charges.

[BonzoHansen]

Yup.

[Savage_Messiah]

Now, if you owe and are trying to dig out a bit, it can't hurt to pay weekly. That way you paid it and didn't spend the $$ elsewhere.

Hit the nail on the head. Thanks a lot.

[johnjzjz]

never pay the min -- always pay more could be like a buck but the fica score will kick up after 6 months of not paying min -- jz

[ryanfx]

you get a better credit score by paying off your card but retaining a balance on it. For instance:

If you have a credit card balance of 500 dollars and person A pays it off in 1 payment of 500, and another person pays it off in 3 payments of about 165 each payment, person B will have better credit.

The thing to keep in mind, good credit is NEVER free!

[GP99GT]

what ryan said, ive paid mine off every month, never paid them interested..ive applied for a few other cards (like a hess card, 5% back on gas purchases) and i was denied, probably because i never keep a balance

[Tru2Chevy]

is it "better" credit wise to make payments in one lump sum right before the due date, or to pay a bit each week every week? Or does it not matter?

Your interest costs will most likely be less if you make weekly payments. Most major credit cards calculate interest based on your average daily balance, so the more you can reduce that balance during the month, the lower your interest will be when you get your statement.

- Justin