What do you guys think? Does it hurt your credit to pay it off every month or help it?
cause you ARE making on time payments every month, but if you have a mortgage or car loan, they will look at that more to determine about installment loans. It also is really a straight matter of your credit score if that is high they will give you the worldOriginally Posted by kittylover4ever
But if you pay it off every month, how can creditors judge if your good at making payments on installment loans on time?
Originally Posted by katiemae1277
that helps your credit immensely, it's the balances on your cards that hurt it, it adds to your debt to income ratio
Originally Posted by katiemae1277
that helps your credit immensely, it's the balances on your cards that hurt it, it adds to your debt to income ratio
If your paying it OFF every month then you exhibit your ability to make your minimum payments on time plus some. NEVER EVER just pay the minimum. If you can't afford to pay it all try to pay at least half or double your minimum. If you only pay the min. but keep using the card you'll NEVER get OUT of debt. Plus, I LOVE the feeling of paying them off each month... not only does it look great on your credit report and improve your credit score but it makes me feel accomplished and responsible instead of stressed and broke. Of course, part of that is because I now use credit responsibly. That's the key.Originally Posted by kittylover4ever
But if you pay it off every month, how can creditors judge if your good at making payments on installment loans on time?
That is actually incorrect. If you want to help you credit rating, you need to have revolving balances. The trick is to keep them relatively low.Originally Posted by katiemae1277
that helps your credit immensely, it's the balances on your cards that hurt it, it adds to your debt to income ratio
Originally Posted by white cat lover
Just watch out for the store cards, the interest rate on them will kill ya!!
My bank loan dude told me to always pay off store credit cards each month, but the "regular" credit cards he told me to carry a small balance on & pay off within 6 months. I've done well with that, as about every 6 months I put a small fortune in Damita's vet bills on my credit card.
VS got me... again! This time I re-opened my card for the discounts/coupons. So, I charged my purchase then stood at the register and gave them my debit card to immediately pay it off!Originally Posted by babyharley
My Victorias Secret & Best Buy credit card had a 22.95% interest rate on them!I paid them off, cut them up & threw them OUT!
Now I just have a Visa to keep for emergencies & to boost my credit a bit.
Never again will I have a store card, they are the devil
I can only guess it must be different in Canada as my personal banker told me the opposite.Originally Posted by GingersMom
That is actually incorrect. If you want to help you credit rating, you need to have revolving balances. The trick is to keep them relatively low.
Creditors LIKE folks that carry balances and do not pay off the balance in full every month (unless it is an Amex card.) This is how they make money off you. If you have a high credit limit but no balance, that means you actually are a credit RISK.
Yes I was told the opposite also with my credit bureaus. Either way keep your debt to income ration under 17% and you will be fine. Banks are lowering the acceptable rate every year.Originally Posted by Yosemite
I can only guess it must be different in Canada as my personal banker told me the opposite.