Reasons for Paying Your Credit Card Bills on Time [creditdiagnosis]

Reasons for Paying Your Credit Card Bills on Time [creditdiagnosis]

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Darren Criss (Blaine) leads The Dalton Academy Warblers in 'Bills Bills Bills' in Season 2, Episode 11 of 'Glee' titled 'The Sue Sylvester Bowl Shuffle'. *LYRICS* At first we started out real cool Taking me places I ain't never been But now, you're getting comfortable Ain't doing those things you did no more You're slowly making me pay for things Your money should be handling And now you ask to use my car (caaaar) Drive it all day and don't fill up the tank And you have the audacity to even come and step to me Ask to hold some money from me until you get your check next week (Bridge): You trifling, good for nothing type of brother. Oh Silly me, why haven't I found another A baller, when times get hard he's the one to help me out Instead of a scrub like you who don't know what a man's about (Chorus): Can you pay my bills Can you pay my telephone bills Can you pay my automo-bills If you did then maybe we could chill I don't think you do So, you and me are through (Repeat) Now you've been maxing out my card (caaaard) Givin' me bad credit, buyin' gifts with my own name Haven't paid the first bill But you're steady heading to the mall Goin' on shopping sprees Perpetrating to your friends like you be ballin' And then you use my cell phone (phoooone) Calling whoever that you think at home And then when the bill comes all of a sudden you be acting dumb Don't know where none of these calls come from When your momma's number's here more than once (Bridge): You trifling, good for ...

http://leafgardenpress.com/ The Warblers - Bills, Bills, Bills (LYRICS)

Paying your credit card bills, or any bill, on time is not just a matter of responsibility but also practicality. While putting off paying your credit card bills might be enticing at times, especially when you are on a tight budget and are having a hard time juggling bills, in the end, it will make better sense to prioritise credit card bills among the first ones to pay every time your pay check comes in.

One of the most obvious reasons for paying your credit card bills on time are the steep penalties or fees that are levied each time you miss your deadline. These fees will add to your existing balance, and will end up bloating your monthly minimum payment, if you regularly miss payments and get penalty after penalty.

Aside from the penalties, interest will also accrue on your existing balance. Each Irish credit card, even the best credit card, adds a compounding interest on your unpaid balance.

In many cases, this interest is only added after a certain period. If you pay your balance on time, you will not only avoid the late fees but also the interest. Remember the interest and the late fees compound, which is the reason why people who regularly miss their payments end up in credit card debt.

Another good reason for paying your credit card bills on time is your credit score. Keeping a good credit score is very important because it will affect not just your dealings with your credit card company, but every financial transaction in the future.

If you have a bad credit history, banks and other financial institutions will be more cautious in granting you loans. Making big purchases, such as buying a car or a new home, will also be harder since you might be required to make a bigger deposit or outright be turned down if you don't pay in cash. Remember that each time you do not pay your credit card bill on time; your credit score will take a hit. This might not sound much but each hit will stay on your credit history for a long time and will show lenders that you can not be relied on to pay bills when they are due.

So the next time you feel like putting off paying your credit card bill, remember the consequences. Pay your bills on time and save yourself some money while keeping your credit history clean.

More Reasons for Paying Your Credit Card Bills on Time Issues

Question by Joe Fox: Which method isbetter when estblshing credit, paying off the first bill in full ontime or half now, half later? My first credit card bill is coming up, $ 117. I have enough to cover it in full but I've been told I wont establish credit that way and that I need to pay half this month, and then half the next month. I just want to establish a strong healthy credit score and I'm not sure what to do about this.. Best answer for Which method isbetter when estblshing credit, paying off the first bill in full ontime or half now, half later?:

Answer by None
half each month is good.

Answer by mindtrapz2001
the credit bureaus look at your credit worthiness and payment history. If your bill is $ 117 and it is due next month i would pay it in a minimum of 4 installments, making sure that you have the entire bill paid before the due date. When a creditor looks at you they are really impressed by paying things off early. So for every purchase make sure that you pay off your debts in multiple paymens and before they are due

Answer by bdancer222
As long as you pay at least the minimum payment by the statement due date, it will be reported to the credit bureau as an on time payment. There is absolutely NO advantage to carrying a balance and making payments. It just cost you interest. You get no extra points for paying interest. If you do not pay the full balance, you will be charged interest. There is an interest free grace period between the purchase date and the statement due date if you pay the balance in full every month. The best way to use your card to build good credit history is to use the card for small purchases and pay the balance in full every month. That will build good payment history and avoid interest.

Answer by Tom K
I agree totally with bdancer222 that there is no advantage to paying the minimum or half. Best to pay it all off and avoid the interest when you can. Except... Except that your credit report will only show the most you've charged. You could have $ 1500, or whatever, in available credit. But if your highest monthly charge is only $ 117 (for example), then that's all future creditors considering you will see. They won't see that you've been deemed worthy of a $ 1500 credit line unless you actually charge $ 1500. Do pay off your credit card as quickly as possible. But next time you have a big purchase to make, even if you've got the cash for it, charge it. Seriously. Charge it just so that your credit record will reflect the actual amount of credit that you have. And then use the cash that you have to repay the credit card immediately. Sounds funky, but that's how it works.

Answer by stan c
It's always good to pay the balance if possible. A credit score is based on a 12 month activity.It usually goes up between 5 to 10% per month. If you use it for gas and small items only, you should have a credit score of at least 660/749 which is good. Excellent is 750/840.

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