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Question By
CreditGotMeLikeHUH

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Is it more beneficial to pay off items on my credit card immediately after purchase?

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Top Contributor
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No!! That hurts!!

If you pay the bill very quickly after it arrives that is excellemnt! You will show positive marks on usage and that helps.  But, if you were to pay immediately after making the purchase, your credit will NOT show usage because it wouldn't have the time to be reported, and that will hurt.

You won't be accruing any interest unless you don't pay the bill in full, then the interest will accrue on the remaining balance.

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Reply by
DJHall2216

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72 People Helped

^-- This information is almost correct.  FICO scores, which are what most lenders use to make credit decisions, take a hit if -all- your credit cards report $0 balances.  However, they also decrease steadily the higher your reported balances go.  Extensive testing has shown the best possible score is obtained if one card reports the smallest possible balance greater than $0 and the rest report $0.  Since most card issuers report any balance below $2 as $0 your, smallest possible balance greater than $0, and the balance that gives you the absolue best FICO score, is $2 ($3 for Discover cards).

Summary:  Your highest possible score is obtained by paying one card down to $2 or $3 before the bill is issued and all your other cards paid to $0 before the bill is issued.

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