I like to tell everyone who will listen about the huge value they can get by maximizing credit cards and using them responsibly. There are so many great credit cards out there, and those who are using debit cards or paying cash are basically throwing money out the window (assuming they’d be able to use…
Continue reading: Does Applying For Credit Cards Hurt Your Credit Score?
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As long as you pay your bill in full before the due date then it is no problem. There is no need to pay the bill early or before the statement closes. If this was a higher interest rate market you would be doing yourself a disservice. You would be spending the money early for no reason. This would impact your credit score but not as much as you think.
The part that you are missing is that your score will drop if you use one card and it bills with +30% on that card. For example, you have a number of cards with a total available credit line of 100K across all cards and they all have a zero balance. One of your cards has a $500.00 credit limit and you charge $350.00 and it bills on your statement. Your credit score will drop by 30-40 points because you have used of 30% ON ONE CARD. Completely stupid scoring system, but that's how it works. I tested this in 2021 a couple of times. As soon as I paid the $350 off, score jumped back up.
The one reason I can think of paying off a credit card early is managing spending with smaller credit limits
My credit score ranges between 798-817 overtime with different agencies , but always always the score dings 4points down when I apply for a new card .
Being a dual citizen the major difference in Australia is that the larger your credit limit the greater your possible “debt”
It depends on your credit usage. If you spend a lot on credit cards for the purposes of points, then it makes sense to pay the credit card prior to the statement closing date. For instance, if I charge $15K to my credit card because it is convenient, and I want a threshold bonus, then if I pay the card prior to the monthly closing date, my credit usage will be zero. If I wait for the statement to pay, then the $15,000 will show on a credit report as balance owed on a credit card. By simply paying it online a day earlier than the statement date, your credit score will be higher. If the money is sitting in a low interest bank account, it makes sense just to pay the balance prior to the closing date. This is especially true if you are charging a lot each month across several credit cards, which some of us who read travel point blogs tend to do.
Hi, my son is a college student without any income; he has my additional cards for a few years, his credit score is around 774 out of 850 for Experian. He is planning to apply his own first credit card now.
He flies international (CX or UA or Qatar) two times a year, and sometime stays in Marriott , dine in restaurants and do some online purchase.
Which credit card would you recommend him to apply for his first card and wont get rejected for sure? Please advise.