| Posted By |
Message |
| Pages: [1] 2 |
MarathonKnitter
HAPPY
Member since 2/07 17374 total posts
Name:
EMBRACING CHANGE
|
paying off your CC every month
how does one pay a cc balance off every month to avoid paying interest?
i haven't been one to use cc very much, so i'm a little ignorant on this.
thanks
|
Posted 12/16/15 2:22 PM  |
| |
|
Long Island Weddings
Long Island's Largest Bridal Resource |
luvbuffet
LIF Adult
Member since 7/10 6470 total posts
Name:
|
Re: paying off your CC every month
dont buy what you cant afford! .live within your means?
|
| Posted 12/16/15 2:25 PM |
| |
|
PhyllisNJoe
My Box Is Broken
Member since 6/11 9145 total posts
Name:
Phyllis
|
Re: paying off your CC every month
Posted by luvbuffet
dont buy what you cant afford! .live within your means?
This
Think of it as a debit card when using it. That way you will only spend as much as you would if we're actually using a debit card
We use our cc for everything bc we get cash back. As long as there is no balance, we make $ using that instead of debit
|
| Posted 12/16/15 2:29 PM |
| |
|
MarathonKnitter
HAPPY
Member since 2/07 17374 total posts
Name:
EMBRACING CHANGE
|
Re: paying off your CC every month
Posted by luvbuffet
dont buy what you cant afford! .live within your means?
this has been my motto for many, many years... hence why i don't have much experience with cc.
but i'm investigating using cc purchases towards travel. and i'm investigating the pitfalls.
|
| Posted 12/16/15 2:30 PM |
| |
|
MarathonKnitter
HAPPY
Member since 2/07 17374 total posts
Name:
EMBRACING CHANGE
|
paying off your CC every month
but how is this done?
do you wait until the bill arrives?
haven't you already been charged interest by then?
do you pay it before it's due? if so, how much work is it to figure out the exact dollar amount?
|
| Posted 12/16/15 2:31 PM |
| |
|
PearlJamChick
No one sings like you anymore.
Member since 7/10 9264 total posts
Name:
Petticoated Swashbuckler
|
Re: paying off your CC every month
Posted by luvbuffet
dont buy what you cant afford! .live within your means?
Exactly this.
We use ours for groceries, gas, the pet supply store, the liquor store and beer distributor and restaurants....monthly expenses that don't fluctuate much.
We also use ours for things like IKEA, Home Depot and clothing purchases...those aren't monthly but are budgeted for and we have money to cover the purchases.
And finally, we use them when we travel rather than carry a lot of cash.
The balances are always paid in full because we only charge what we know we can afford.
We receive points/miles on two of the three cards we have, which is why we use the cards for everyday purchases. We let the points/miles accumulate and use them toward travel.
|
| Posted 12/16/15 2:34 PM |
| |
|
DrMeg
Back home!
Member since 5/08 1858 total posts
Name:
Meg
|
Re: paying off your CC every month
Posted by MarathonKnitter
but how is this done?
do you wait until the bill arrives?
haven't you already been charged interest by then?
do you pay it before it's due? if so, how much work is it to figure out the exact dollar amount?
I believe if you pay it by the first of the month then you can avoid interest. You will pay interest if you wait until the bill is due, even if you pay the whole balance.
|
| Posted 12/16/15 2:35 PM |
| |
|
M514
Hi
Member since 8/10 6011 total posts
Name:
|
paying off your CC every month
I wait for the bill and pay it in full before it's due. You get charged interest after the due date.
|
| Posted 12/16/15 2:36 PM |
| |
|
PearlJamChick
No one sings like you anymore.
Member since 7/10 9264 total posts
Name:
Petticoated Swashbuckler
|
Re: paying off your CC every month
Posted by MarathonKnitter
but how is this done?
do you wait until the bill arrives?
haven't you already been charged interest by then?
do you pay it before it's due? if so, how much work is it to figure out the exact dollar amount?
You get the bill and pay off the balance in full by the payment due date. You don't get charged interest unless you don't pay it in full.
|
| Posted 12/16/15 2:36 PM |
| |
|
NervousNell
Just another chapter in life..
Member since 11/09 54921 total posts
Name:
..being a mommy and being a wife!
|
Re: paying off your CC every month
Posted by MarathonKnitter
but how is this done?
do you wait until the bill arrives?
haven't you already been charged interest by then?
do you pay it before it's due? if so, how much work is it to figure out the exact dollar amount?
I have never carried a balance and no, there is no interest at all ever if you pay in full by the due date.
I just use my credit card as a convenience- so as to not have to carry cash. I don't use it to buy anything I couldn't afford without it.
If I can't afford to pay for whatever it is by end of month, then I don't buy it
|
| Posted 12/16/15 2:37 PM |
| |
|
luvbuffet
LIF Adult
Member since 7/10 6470 total posts
Name:
|
Re: paying off your CC every month
i always pay on the due date or the day before and pay statement balance in full. ive never paid interest. it runs thru a cycle. the cut off is like the 23rd of the month. so any transactions made after the 23rd are put on the next billing cycle.
Message edited 12/16/2015 2:38:06 PM.
|
| Posted 12/16/15 2:37 PM |
| |
|
NervousNell
Just another chapter in life..
Member since 11/09 54921 total posts
Name:
..being a mommy and being a wife!
|
Re: paying off your CC every month
Posted by DrMeg
Posted by MarathonKnitter
but how is this done?
do you wait until the bill arrives?
haven't you already been charged interest by then?
do you pay it before it's due? if so, how much work is it to figure out the exact dollar amount?
I believe if you pay it by the first of the month then you can avoid interest. You will pay interest if you wait until the bill is due, even if you pay the whole balance.
Not true.
My Amex and Visa are both due on the 29th of every month. I pay by the 29th and have never paid interest.
|
| Posted 12/16/15 2:38 PM |
| |
|
MarathonKnitter
HAPPY
Member since 2/07 17374 total posts
Name:
EMBRACING CHANGE
|
paying off your CC every month
OK. thanks.
that makes so much sense and is so much easier than i ever would have imagined.
|
| Posted 12/16/15 2:45 PM |
| |
|
Deeluvsvinny
DONE
Member since 10/08 4952 total posts
Name:
Whatever
|
paying off your CC every month
I pay the balances off each month usually a week or so before the due date.
However, my cousin used his for everything and pays it down off to $0 balance every Friday afternoon- it's his way of tracking weekly expenses and managing his money.
Everyone has a different method.
|
| Posted 12/16/15 2:57 PM |
| |
|
MrsT809
LIF Adult
Member since 9/09 12167 total posts
Name:
|
Re: paying off your CC every month
Posted by MarathonKnitter
but how is this done?
do you wait until the bill arrives?
haven't you already been charged interest by then?
do you pay it before it's due? if so, how much work is it to figure out the exact dollar amount?
It's really easy with auto pay especially. I have most of the credit cards set up to automatically be paid in full on the date due. Best of both worlds bc you can wait until the last day but still avoid any interest.
|
| Posted 12/16/15 3:04 PM |
| |
|
2BadSoSad
LIF Adult
Member since 8/12 6791 total posts
Name:
|
Re: paying off your CC every month
We don't use them and when we do, its for big purchases or vacations so we have recourse should we need it. BUT if we don't have the money in our bank accts to cover what we charge, then we don't buy it.
|
| Posted 12/16/15 3:09 PM |
| |
|
Paramount
Sweet!
Member since 7/12 4289 total posts
Name:
|
Re: paying off your CC every month
Ok. This is how it works.
1. I URGE you to use your credit cards RESPONSABLY. If you have 2 credit cards you should rotate using them every month.
ETA: I forgot to add, you should use your credit cards at least once every 6 months. You DONT want the bank to close your credit cards. One of the factors of your credit score is longevity. HOW long have you had credit. So you don't want them closing your cards.
Jan use card A. Gas, grocery's. Pay it off
Feb Use card B. Same way.
March use card A.
What this does is help build your credit. I want you to count up how much credit you have available on your credit cards. Lets say you have 2. Each is $500. That means you have $1000 credit available to your name.
Lets say you are building your credit. You use one card like I said. Lets say you max it out at $500. Even if you pay it off at the end of the month you are using a whopping 50% of the credit you have. That's not a good idea. I don't know the "magic" number. However I would say stay under 20 -255%. The magic number being how the credit bureau sees you as a risk. you NEVER want to use a lot of your credit if you can help it. It will be bad for your credit score.
2. How to use a credit card:
Its all about your billing cycle. ASK what your billing cycle is.
Lets say YOUR billing cycle is the 15th to 14th. So You go shopping. On Jan 15th your statement closes. They mail you bill with a "Pay by" date. If you pay the credit card off by the "pay by" date you pay no interest.
Your statement closes. You get it on the mail on Jan 20th. It says $206.52 is your balance.
-The statement will show a MINIMUM due.
-It will show a pay by date.
If you pay in full (which you can) by the pay by date then you are free and clear.
If you miss the payment you will get a ding for being late and accrue interest.
Some things you MUST keep in mind:
1. NEVER EVER EVER NEVER just pay the "minimum". If you are having financial difficulty you should still pay $5 over if you can. If you pay JUST the minimum it will ding your credit report. Yes, even if you pay on time. No, I don't make the rules. Paying the minimum is ALMOST as bad as not paying.
2. Keep in mind if you send them checks to give PLENTY of time for them to get the check.
3. All major credit cards will let you pay electronically.
4. Your credit card should have a feature online that gives you options to set up alerts, 10 days, 15 days (etc) before your payment is due. I use those.
5. ALWAYS ALWAYS check your online statement every few days. Fraud is huge. They will make a few small charges to see if you notice. Then slam you.
6. NEVER be afraid to call your CC company and ASK them to lower your interest rate.
7. If you are late and get a late fee call and ask to have that removed. Sometimes they will.
In conclusion.
Pay the full amount by the "pay by date" on YOUR statement. As long as you pay by then you are good.
-Pay more than the minimum. Better yet, pay the whole thing.
- NEVER use all of your available credit. try to keep the number low.
If you have ANY questions please let me know. I am no expert but DUG myself out of debt from a 620 credit score to an 815. If I don't know the answer or are not sure I will tell you so.
Message edited 12/16/2015 3:31:39 PM.
|
| Posted 12/16/15 3:30 PM |
| |
|
MrsB12614
LIF Adult
Member since 4/14 1986 total posts
Name:
Mrs
|
paying off your CC every month
I use an AMEX for this reason we charge EVERYTHING all month but the balance must be paid in full each month. The card doesn't have terms of interest because you have to pay it off monthly- if you don't then there's penalties. I have tons of rewards using my Amex
|
| Posted 12/16/15 5:50 PM |
| |
|
shadows
LIF Adult
Member since 1/10 4694 total posts
Name:
|
Re: paying off your CC every month
I am very anal about never having a balance and always paying in full. I check my cc account on my phone like every 7-10 days and just pay the full outstanding balance right then. I don't wait for the bill to come out or anything.
|
| Posted 12/16/15 5:50 PM |
| |
|
PhyllisNJoe
My Box Is Broken
Member since 6/11 9145 total posts
Name:
Phyllis
|
Re: paying off your CC every month
Posted by Deeluvsvinny
I pay the balances off each month usually a week or so before the due date.
However, my cousin used his for everything and pays it down off to $0 balance every Friday afternoon- it's his way of tracking weekly expenses and managing his money.
Everyone has a different method.
Never thought of doing it this way. Interesting.
I'm gonna mention it to DH - it probably doesn't feel as harsh lol
|
| Posted 12/16/15 5:57 PM |
| |
|
LiveandLearn
LIF Adult
Member since 4/10 1588 total posts
Name:
|
Re: paying off your CC every month
Posted by PhyllisNJoe
Posted by Deeluvsvinny
I pay the balances off each month usually a week or so before the due date.
However, my cousin used his for everything and pays it down off to $0 balance every Friday afternoon- it's his way of tracking weekly expenses and managing his money.
Everyone has a different method.
Never thought of doing it this way. Interesting.
I'm gonna mention it to DH - it probably doesn't feel as harsh lol
It doesn't feel has harsh this way. I do it every two weeks on pay day. I get paid, I go online get the balance and pay it. It is just easier for me to manage this way and keep better track of what I am spending.
|
| Posted 12/16/15 6:12 PM |
| |
|
ali120206
2 Boys
Member since 7/06 17796 total posts
Name:
|
Re: paying off your CC every month
Posted by NervousNell
Posted by DrMeg
Posted by MarathonKnitter
but how is this done?
do you wait until the bill arrives?
haven't you already been charged interest by then?
do you pay it before it's due? if so, how much work is it to figure out the exact dollar amount?
I believe if you pay it by the first of the month then you can avoid interest. You will pay interest if you wait until the bill is due, even if you pay the whole balance.
Not true.
My Amex and Visa are both due on the 29th of every month. I pay by the 29th and have never paid interest.
My AMEX is due the 10th and the Visa the 23rd. You can request specific payment dates for the card.
I pay the credit cards online by logging into their site.
|
| Posted 12/16/15 6:29 PM |
| |
|
DiamondGirl
You are my I love you
Member since 7/09 18802 total posts
Name:
DiamondMama
|
Re: paying off your CC every month
Posted by luvbuffet
i always pay on the due date or the day before and pay statement balance in full. ive never paid interest. it runs thru a cycle. the cut off is like the 23rd of the month. so any transactions made after the 23rd are put on the next billing cycle.
Exactly. I use my cc as cash if I can't pay it off I don't buy it luckily I haven't needed to carry a balance I know there are situations where it is unavoidable but I don't buy what I can't pay off
|
| Posted 12/16/15 6:58 PM |
| |
|
soontobemommyof2
My boys...my everything <3
Member since 4/15 3635 total posts
Name:
|
Re: paying off your CC every month
Posted by Paramount
Ok. This is how it works.
1. I URGE you to use your credit cards RESPONSABLY. If you have 2 credit cards you should rotate using them every month.
Some things you MUST keep in mind:
1. NEVER EVER EVER NEVER just pay the "minimum". If you are having financial difficulty you should still pay $5 over if you can. If you pay JUST the minimum it will ding your credit report. Yes, even if you pay on time. No, I don't make the rules. Paying the minimum is ALMOST as bad as not paying.
I agree, try to use your credit cards pretty often because creditors like to see that you do use ur credit but they also like to see that you are responsible enough to pay on time. Also try to use 10% of your available credit that will help bring up your score pretty quickly. I learned that from Suze Orman.
Message edited 12/16/2015 7:27:05 PM.
|
| Posted 12/16/15 7:23 PM |
| |
|
Momof3boys
LIF Infant
Member since 6/15 306 total posts
Name:
|
Re: paying off your CC every month
My credit card is from the same bank we have our checking accounts with. They are linked so I check it a few times a week and just wire payments as needed to keep the balance at zero. I have never paid interest so the Balance is paid in full each month.
I charge everything as I don't have time to stop at the ATM, lol. I also get tons of Thank You points....so I get a few hundred dollars each year in gift cards to various stores!
|
| Posted 12/16/15 10:20 PM |
| |
|
| Pages: [1] 2 |
