Is it bad to pay off credit card in full Reddit?

Is it better to pay off credit card in full Reddit?

If you pay your statement balance in full every month, you avoid paying interest (which you definitely want to do). So it doesn’t matter if you pay as you go, just make sure you pay off the entire statement balance when it’s due each month.

Is it bad to pay off a credit card and close it?

A credit card can be canceled without harming your credit score⁠—paying down credit card balances first (not just the one you’re canceling) is key. Closing a credit card will not impact your credit history, which factors into your score.

Is it bad to max out a credit card and pay it off Reddit?

It’s fine. You could even call ahead of time and ask if they’ll raise your credit limit. Most colleges won’t allow cc payments without a fee, which usually negates rewards. If they don’t charge a fee, you’re fine to do what your asking.

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Should I pay minimum or full balance Reddit?

pay off that balance in full before the due date. Make sure to pay the statement balance, not just the minimum balance due, otherwise you’ll likely be paying interest for carrying a balance month to month.

Can I pay off my credit card multiple times a month Reddit?

Making multiple payments per bill cycle does not impact your credit score. The impact of those payments on your total credit utilization may impact your score though.

Should I leave a small balance on my credit card?

It’s Best to Pay Your Credit Card Balance in Full Each Month

Leaving a balance will not help your credit scores—it will just cost you money in the form of interest. Carrying a high balance on your credit cards has a negative impact on scores because it increases your credit utilization ratio.

Is it better to pay off a credit card and close it or keep it open?

From a credit scoring standpoint, it is typically better to keep the paid off accounts open. Your credit limits might have a small impact on your credit scores, but your overall utilization rate is much more important. Once your accounts are paid off, your utilization rate will be very low, if not zero.

Is it better to close a credit card or leave it open with a zero balance Reddit?

The standard advice is to keep unused accounts with zero balances open. The reason is that closing the accounts reduces your available credit, which makes it appear that your utilization rate, or balance-to-limit ratio, has suddenly increased.

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Should you ever max out a credit card?

Maxing out one credit card is pretty bad for your credit score. Maxing out all your credit cards is much worse. Fortunately, your credit score can recover as you pay down your balances, but first, you have to stop creating more debt.

Is maxing a credit card bad?

A maxed-out credit card can lead to serious consequences if you don’t act fast to lower your balance. When you hit your card’s limit, the high balance may cause your credit scores to drop, your minimum payments to increase and your future transactions to be declined.