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Kevin asked in Business & FinanceCredit · 2 months ago

How can someone use a credit card but not have any credit card debt? Seems like a credit card would carry the debt with it.?

Update:

ok wait...let me get this straight. When i see the words "credit card debt", it's talking more of the unpaid interest only after the intro period has run out with an excellent intro period payment history?

14 Answers

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  • 2 months ago

    You use it and pay it off prior to end of month.

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  • 2 months ago

    As long as you pay the full balance every billing cycle you have no debt.

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  • 2 months ago

    You DO still have debt, it is just short term debt. My credit score goes up or down by a few points based on my balances at the time the reporting companies check those balances, even though I never carry over any charges to the next billing cycle and start racking up interest. I pay my charges off in full each and every billing cycle. That is still debt. If I didn't pay in full, or pay at all, then that debt would start growing.

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  • 2 months ago

    They could pay it off right away.

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  • 2 months ago

    Technically, every use of a credit card incurs debt.  If someone pays for a $5 coffee 20 times in a month, then they have a $100 debt.

    However, when someone says they have no credit card debt, they usually mean that they carry no balance over from month to month, and are paying no interest.  In the example above, when the statement comes, such a person will pay $100 to the bank.  It's when someone pays less than the full balance that something gets carried over to the future, and that's often a pathway to trouble.

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  • Anonymous
    2 months ago

    We simply pay our balance every month on or before the due date. So we have very short term debt which will be paid usually within a month or two. 

    People in debt do not pay their balance in full and they incur interest and have what is considered debt.

    I use credit cards because they are more secure than debit or cash and because they are convenient and finally because I get 2-5% cashback which can add up over years.

    Debt can he unpaid balances, interest, penalties and so forth. Many stupid people carry balances and pay high interest every month. Even people who are otherwise not so dumb are dumb with credit cards. But, with so many laid off, a lot more people will be using them. They have limits though. And when they reach the limit, they will not let you keep charging.

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  • 2 months ago

    They pay the bill in full each month so they don't owe it.

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  • DON W
    Lv 7
    2 months ago

    I have credit cards.  I use them each month.  When the bills arrive at my home at the end of the billing cycle, I pay them in full.  So, I have no debt.

    It is true, though, that I could potentially incur debt up to the combined limits of my credit cards.  This is of concern to the credit card companies should they approve me getting another credit card, or increasing my credit limits.  But, since I have proven over many years that I can manage my credit cards, that hasn't been a concern.  If you will, it's "potential" not "actual" debt.

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  • glcang
    Lv 7
    2 months ago

    They pay the balance off right away.

    This way they owe no interest and raise their credit score because they are a good risk.

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  • 2 months ago

    Yes you can.  A person without credit card debt, pays off the balance every month.  Credit card debt is when you dont pay it off in full every month.  That is when the 23% interest kicks in.  that is credit card debt, that is painful and punishing.  Always use a credit card as if it was cash.  If you don't have the cash to pay for something, don't buy that something on a credit card.  

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