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Posted in Credit Cards
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Question By
RaviPatlegar

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Credit card payment
I always do payments after purchasing by credit card less than 10% of credit limit and immediately paid it of through checking account. This will result in 0 % utilization since by billing cycle reflects 0 $ as payment/utilization.

Do we need to wait for credit billing cycle to reflect the credit used ( keeping it below 20%) and then after bills are reflected for payment, only then do the payment to get better impact on credit score. 0% utilization used to get c grade whereas 1to 20% used to get A grade.

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What you want to do is once a month use your card as you currently are. When your bill comes pay it off in full. Rinse and repeat, for example let's say you use it to pay for gas, once your statement for the month is posted saying you owe $40 for your gas purchase and you payment is due in 3 weeks, between this time and when your next payment is due go buy gas again.  Then when your payment is due do not pay off the "Balance" ($80 for both gas purchase before and after the statement was issued) pay off the "Statement Balance" (The $40 the is billed on your recent statement). That will prevent you from paying any interest and it will show an actively used card and build up your on-time payment history. All about working the system. The way you are operating now, altough you are making charges to your card, they are not being counted because you pay them off before your statement is published which shows a $0 balance. You want some balance to show on your statement, as long as you pay that amount off in full each month you still avoid interest. I am not sure on this, but I also believe you are not getting credit for on-time payments either since you have been paying before your statement posts with a balance, I belive the on-time payments are tied to your statement having a due date.

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