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Anonymous
Anonymous asked in Business & FinanceCredit · 2 months ago

Am I using my credit card correctly?

I'm new to the credit card. I have it with bank of america. I have the bank of america app and i have three accounts on the app. Checking, Savings, and Rewards Card which I am assuming is the credit card. Each time i pay something i transfer money from my checking to the rewards card account as the exact amount i just used. Is that how you use your credit card or am i throwing money away??? People gave me advice but i cant really trust them because they have a horrible credit score. So anyone with experience can you please enlighten me???

6 Answers

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  • 2 months ago

    That is a smart way to do it. You are not in any way throwing money away. You are saving money by not letting a balance carry and interest accrue.

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  • 2 months ago

    It's fine, but really unnecessary. You can usually make do with just one transfer a month. Basically, you should (1) keep the amount you owe (what you used and haven't yet replaced with a transfer) below 10% of your credit limit, and (2) between each statement closing date and the next due date, transfer at least as much as the balance that was on that statement (so that, by the due date, you owe only for what you used after the closing date).

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  • Anonymous
    2 months ago

    Its nowhere near as complicated as you seem to think.  I pay my credit card bill once a month, every month via autopay. No apps are involved or needed.

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  • Eva
    Lv 7
    2 months ago

    You aren't building your credit score by doing it that way. You need to wait until the statement is issued and then pay it. You're using your credit card like a debit card. You aren't throwing money away and your card is always paid, but as I said it won't help build your credit.

    • Dodger2 months agoReport

      Okay, I was used to using a debit card for quite some time. So that is why I had that strategy and did not know. I appreciate your response. So now I know to wait for the statement. 

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  • Judy
    Lv 7
    2 months ago

    That's one way, and it's ok to do. You can also wait until the end of the month, and pay when they send you a statement, if you'll still have the money. You can pay just part of it and wait until the next month to pay more, but that's not a good idea. They'll charge you interest, plus it's easy to let the bill get bigger and bigger until you can't pay it.

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  • Rick B
    Lv 7
    2 months ago

    That is a lot of work. Why don't you simply pay the credit card balance in full at the end of each month when your statement arrives???

    If you are going to pay every single transaction, you should just use a debit card.

    • Dodger2 months agoReport

      I did request one. I think the lady at the bank completely ignored my request.

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