When using credit cards you want to pay off your entire balance BEFORE the due date every month to not be charged any interest.

[THREAD]

I want to go a lil more in depth about using credit cards, points, and myths to building credit.

Why you should pay your balance off BEFORE your statement day and not carry a balance.

First I want people to know that you do not need to carry a credit card balance to help "build your credit" .

I hear people say "making the minimum payment helps build credit" that is false, you are paying interest. It only helps the credit card companies.

When your credit is reported the bureaus only see if the card is in good standing with no payment missed that month.

Having a $0 balance does not hurt your score.This is what your report looks like on a monthly basis

Is the account in good standing?
Yes (OK) or No (not my pic)

When you carry a balance and only pay the minimum amount due. You are paying interest on the money you spent.

If you are paying interest you are using credit cards wrong and are wiping out benefits from points or cash back that you think you are gaining.

So to not pay any interest pay your balance off in full before the billing cycle ends .

Look at your last statement to see the date that your billing cycle ends and also look at how much interest you were charged last month.

If you aren't paying off your CC in full every month don't play the points or cash back game.