credit card education

nicoleg1982

I heard something last night I'd never heard before - pay your CC before the closing date on the billing cycle.  Interest is accrued on that cycle-end figure, so if it's $100 less, that's whatever % less you're paying in interest at the end of the month.

Totally common sense, no idea why I never thought of it before.

*Barbie*

better yet, pay your card in full each month and don't waste the money on interest. i use my credit cards to build a good credit history and get cash back - pay them in full each month and do what i can to maximize the points/cash back. .

nicoleg1982

Yes, that is true, too.  I have one that I keep revolving credit on, but pay down in chunks every month.  The others I rotate, based on points/mileage/rewards, for gas and grocery type expenses that are paid off every month.

notamrs

If your credit is decent, you can also look around for 0% balance transfer offers.  I have a couple of those and keep track of when they expire so I can roll them somewhere else.  You'll have to pay a transfer fee, but depending on how long they give you for repayment, it's often less than paying the interest every month.  Plus you can pay down the balance faster because the payment goes completely toward the balance, not split between balance and interest.

*Barbie*

I have one card that i use all of the time because it has the best rewards plan - anywhere from 1-10% cash back depending on the purchase, plus extra points for each purchase + extra loyalty points for my relationship with their bank.

i have carried a balance for a second month maybe twice in the 7ish years that i've had the card - but with the rewards, it's just free money. they used to only do GC or item rewards (i'd usually get $100 or $200 Target cards when i got enough points) - but they revamped the program last year and I can now get cash deposits into my checking or savings accounts. it's helped us continue to build our savings with all of the job changes/unemployment and hospital bills over the last year. (because it's money we never would have seen otherwise, so just deposit directly into savings)