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If I pay off credit card purchases the next day will I build up the same credit as end of month pay?
I use my cc for small purchases to build credit. Is it really true that bureaus will only register the account values left at the end of the monthly period or will the fact that I used the card throughout the month and paid it off as I went (within a week) help my credit? If I wait to pay til the end of month, do I get interest charges?

How do you know one way or the other? I see a lot of conflicting information everywhere and I just want to get back track. This credit rating system is certainly very imperfect and nontransparent.


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Good question and I'll give a quick answer for now.  When you get a credit card statement, there are two dates that are very important.  The obvious first one is "Date Due" which is the latest date you want your payment to go in. That's obvious.

But, another important date is "Closing Date".  That is the date used to tabulate all purchases made during the billing period so that the statement can be sent out to you.  If the closing date is the 15th of the month, anything purchased between the 16th of the previous period and the 15th of this will be included on the bill as the "Total Amount Due."  No interest is charged on purchases.

But an important "situation" with credit cards that I did not know until after joining Credit Karma  and reading the very informative articles is "usage" which basically means how much you use the card between billing periods.  Paying for a purchase the next day will end up NOT showing a usage percentage on the credit score which will hurt it.  While it may sound sensible, it doesn't work well in the credit game.

So, please wait for the bill to come and then pay the total amount due and make the time to read the articles here, because the purpose of Credit Karma is to teach people about credit and how to use it.

Hope this helps. 

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People make rebuilding credit much more complicated than it has to be.

Credit utilization is extremely important and should be between 1-30%. If you are trying to build credit you should not be going over 30% utilization for any reason. Ideally you want to stay between 1-9% utilzation to build your score quicker.

Pay off your ENTIRE bill every month several days before it is due. The next day make another purchase to bring your credit utilization back up between 1-9% rinse and repeat.

Remember, at this stage you are proving to the credit companies that you can responsibly use a credit card. Keeping your credit utilization below 10% and paying off the entire balance every month is all you need to do.

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Quick fix?

The only thing that raises your credit score quickly is on time payments, patience, and keeping utilization under 30%. I opened a fingerhut fresh start account. 6 months I've got from mid 400s to mid 500s and climbing. I'm hoping by Oct/Nov I'll be at a 600 or more and I can get a not so great rate for a vehicle.

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Usage vs. Credit Utilization

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Yes, but if one waits until the date due, and you used a high percentage of the card's credit line, then it hurts one's credit card utilization, doesn't it?  What's better?  High usage or lower credit utilization?  Which weighs more heavily on the cerdit score?

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