What’s the best way to pay off credit cards?
I have two credit cards. I’ve been paying them both early and above the minimum, and my credit score has been steadliy rising. I’m just wondering if it’s better for me to pay off the card in full every time or to pay far above the minimum each time?
Tags: Bank Cards, Pay off Credit Cards
Borrowing money from the bank and then never paying back, lol.
If you must have a credit card, pay it off in full everytime.
You aren’t guaranteed good health or even a job for the next month. So consider it planning ahead.
It only takes getting behind once or twice for it to snowball on you. Then your interest rate will rise after being late and that’ll make your payments even higher.
It is always better off to pay the whole credit card balance at the end of every month. What you are doing now is all right, though if you want to clear your balance sooner, I’d recommend
1) For the credit card with the lower interest, continue with the same payments. Continue paying slightly above the minimum.
2) Try and clear the balance off the credit card with the higher interest rates. Therefore devote any extra income you have on paying off this credit card with the higher interest rate.
If you can pay in full..pay in full.
If you are deep into your card, then definitely pay off more than the minimum as best as you can. Also, concentrate on paying off the credit card with the higher APR.
pay them off then pay them in full within the grace period every month you can use their money for the most part of a month with no interest by doing it this way
Although it is a good idea to have as little revolving credit as possible, today many credit card companies will actually cancel your card or raise your rates if you always pay the entire balance in full each and every month.
I find that you can leave a balance of a dollar or two and still feel like you have paid in full and satisfy the credit card companies need to make a living.
Remember if you your balance in full every month they earn no interest and they make money from the interest you pay. If there is never any interest paid, they have no reason to keep you as a client.
If you have several cards and HAVE to keep a large balance on one card then pay off the one with the higher interest rate.
If both of your cards have the same interest rate then pay one off in full this month while paying the minimum on the other and then do the same with the other card the next month. This way you satisfy both credit card companies need to make money and minimize the interest you pay.
I always pay three times what my minumum payment is. If my balance is low, then I just pay it off every month.
It’s better for you to pay off the card in full every time.
It’s also better for you if you have three credit cards. (Just don’t use the third credit card)