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CoreySHS

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When Should I Pay My Credit Card Bill?
Hi all! My name is Corey and I am an 18 year old male who is brand new to the "credit world" and I know very little about it!

I was recently approved for the "BankAmericard Cash Rewards Credit Card for Students" with a credit limit of $700.

I want to boost my scores the best way I can and develop great credit history at a young age.

I know that I am to only spend 30% of that $700 monthly. What I do NOT know is when I should precisely make my payment on my balance? I've done some research, but it's hard for me to comprehend.

Say for example I go out and buy a $210 television today. It shows up on my balance as soon as I get home. My online banking date says, "NEXT CLOSING DATE: 07/03/2014"

My question is in order to boost your credit score the best way, when should I virtually pay the payment online (since I have online banking and will be using the money on my debit card account to pay the CC)?

Should I do it before my "closing date?" Should I have my online account set up to where it will pay precisely on 07/03? Or should I do it a few days after my closing date? I'm assuming "closing date" is another word for "statement due?"

I don't want it to look like I am not paying my bills on time, but I also don't want it to report to the credit agencies as showing that I have a $0 balance because I paid my balance off a few days before the due date...

What advice would you give a newbie like me on when it should approximately be paid to help boost the score?

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You are getting off to a good start by asking questions before you possibly make mistakes.  Too many people don't.

Your best maximum utilization rate is not 30% but 20%, so if you keep spending between 1% and 20%, you'll be doing fine.

"Closing date" is not the date the account is due, but the date the credit card company collects and tabulates all charges to prepare the bill monthly. You do NOT want to do an online payment using this date because it would affect the "usage" ratio.  You DO want to pay the account in full prior to the "DUE DATE" shown on the bill.  Only pay the "Total Amount Due" so you can avoid paying interest.

If, due to circumstances, you are unable to pay the balance in full when the bill comes in, pay as much as you realistically can that is more than the "Minimum" payment.  You really want to avoid having to pay any interest on a credit account.    Follow these suggestions and you should do fine.

I do suggest reading the articles on this site and playing with the financial tools provided so you can learn more about credit and how to use it.  I was trained in accounting and I learned a lot.  That is what Credit Karma is all about---teaching how credit works. 

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