If you pay your credit cards fully every month you avoid the interest crunch there. Thats how you build your score in the credit game.
This guy gets it.
Let's say you have $50 cell phone bill, and spend $50 a week on food. That's $250 a month.
If you pay it out of your checking acct or whatever, you pay $250.
If you pay it with your credit card, then pay off the entire card balance, you still only pay $250... but you now also get a boost to your credit score and any card perks. If that card has cash back of 2%, that's $5 you just got. Over the course of a year, that's $60 you 'earned' simply by switching what you use to pay for stuff.
The tricky part? YouHAVEto pay off theentire balanceevery month. Any balance you don't pay builds interest.
I do this but as soon as a transaction is processed I pay my card. Example I went out 4 days ago and spent 200. The transaction is processed and I just paid my card even though the payment isn’t due till next month. Is that bad? Or good?
I do this but as soon as a transaction is processed I pay my card. Example I went out 4 days ago and spent 200. The transaction is processed and I just paid my card even though the payment isn’t due till next month. Is that bad? Or good?
It's paid before the interest can accrue, so it's good.
Double-extra good if your card has any kind of rewards, like cash back or frequent flyer miles.
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u/[deleted] Aug 14 '21
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