Best way to pay credit card
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What’s the best way to pay my credit card? Is it best to go online and pay off my purchases immediately, or wait for the statement at the end of the month?
Wait for the statement
Best ways to handle credit cards and build good credit is to wait for the statements and pay the in full each month.
Credit card companies don’t like it when you make multiple payments each month. It cost them to process the large number o excess payments. I’ve even heard of people that got their credit card frozen by the credit card companies for this reason!
Another problem is that if you always pay your purchases before the due day, your statements will have $0 balance. This has the same effect on Fico formula as unused credit card. This means it won’t build credit for you.
Lastly – by paying before the due date you’re missing out one of the benefits of using credit cards – the interest-free grace period between the purchase date and the statement due date.
Good luck
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