Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Cards
Profile Image

Question By
MikeLDunn

0 Contributions
0 People Helped
How long does a charge need to remain on a card before paying in order to earn credit?
I am interested in setting up a system where I have certain bills paid automatically on a card, then my bank automatically pay that amount to the credit card (in order to earn good credit history). How long does the balance need to remain on the credit card account in order for this plan to work? Is a few days sufficient, or does it need to "show up" on a statement and then be "paid off" after the statement posts?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
432 Contributions
364 People Helped
Most Helpful Response

Helpful to 2 out of 2 people

Good plan, but think a minute. If you always pay it off in full then there is a possibility that you will never show a balance on your account. Look on the calendar here at CK by clicking on the envelope icon at the top of the page. On the calendar find the card company that you are referring to. Note the date that they report to the bureau. Then look at one of your statements from that company and note the due date.

You need for your report to show a balance (pay after the date reported to the bureau) but you do not want to pay late (be sure and pay by the due date.) If the dates are close it would be much safer to simply carry a small balance each month. The interest you have to pay can be chalked up to the cost of credit.

Remember that zero credit utilization is detrimental to your score. 1-20% is best.

Top Contributor
7367 Contributions
3809 People Helped

If your bill charge is something that is consistently the same, such as an equal payment plan on a utility bill or monthly payments for auto insurance, this would work out okay.  Although, I recommend you have the payment by the bank sent a few days before the card's due date (which is also pretty consistent) so that it arrives in time to clear the amount due.

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.