Paying balance in full

[Bahamut]

Well guys. Some of you know my strategy with credit cards.
For a fast summary:

I never have a balance higher than 10% of my credit limit.
I pay every month double of the minimum amount.
The month the balance becomes zero, I charge a new balance with 10% or less of my credit limit... and then I start over.

Now that you are up to date:

Yesterday I joined Sam's Club (extremely inexpensive, I recommend joining, just $40 a year and you get better prices than a savings groceries store. Pretty suitable for vegans/vegetarians as well (no tofu but some fake meats and a good selection of produce and pretty inexpensive Silk soymilk)

Well... when I joined, I got instantly approved for a $600 credit card. Do not worry, you do not need to give your social to join... they will preapprove you with your name (who knows how) However, if you get it, obviously you must share your SS then

Here comes the trick. I know that always paying in full is not got either, as the lender does not make money with you, so he never increases the credit limit and you either get higher score due that... More or less
However, I do not care if the lender of this Credit Card makes more money or not... $600 credit limit is more than enough, and I already work on my other credit cards to get credit limit raised.

What exactly means "Pay in full" and how do it do it. If I charge to the credit card $500 for example. When I receive the statement it will appear as maxed out? When do I need to pay in full to not make thing to the lender/bureaus that I'm maxing out the card? Do I must pay in full before the statement is closed???


Thanks a lot!!!




Btw... You can buy clothes, electronics of all kind and much more at a better price. No tax adding for businesses

Btw2... The credit card number will appear in your Sam's Club membership card. You may use the credit card in Wal-mart as well.

[AMJ21]

Quote:

Originally Posted by Bahamut

What exactly means "Pay in full" and how do it do it. If I charge to the credit card $500 for example. When I receive the statement it will appear as maxed out? When do I need to pay in full to not make thing to the lender/bureaus that I'm maxing out the card? Do I must pay in full before the statement is closed???

PIF=PIF. If you PIF prior to your statement cutting, your balance will appear as $0. If you do this continually you will never demonstrate to other creditor credit worthiness.

How you pay accounts for 35% of your FICO score. If you want to impress the FICO gods and create history you need to pay after the cut to demonstrate churn in the account and responsibility paying.

[Bahamut]

But if I charge $500 to the $600... when the balance is sent to the FICO, it will appear as maxed out... won't it? Even if I PIF then... that month the CC will be maxed out...

[AMJ21]

YES! And the following month it will be 0. Worry about FICO if you're in the market for a new house or car. Otherwise play the game with their money. No need to prepay. Also, to some issuers like Chase & Amex many prepayments is a RED flag.