Hi, I have some questions about credit cards/credit scores in general.
I recently got a hold of my first credit card in late November. I'm wondering though, how soon do FICO scores take to update for newly opened credit? I'm still quite clueless about how credit cards work. So these two months, I've been paying all of my debt before the closing date; is that the way to do it? I've heard that some people leave a balance on their credit cards, but I would not dare to do that since I feel like my credit score would drop if I stop paying my debt...?
I've been paying cash and using my debit card for a long time, and I've never looked into credit scores, etc. That's why I'm so cluelessAny advice would be greatly appreciated!
- WilliamLv 71 month agoFavorite Answer
You are correct in paying off your CCs every month.
Never being late is also part of that report/score. This is called your payment history.
I haven't paid 1 PENNY in interest on a CC in 30 years.
I look at it this way: When you pay your CC off (in full) it's just like getting an interest-free loan from your bank every month without filling out any paperwork. ; ' )
I wouldn't change anything you're doing now.
There are far too many fiscally ignorant who think money is only for spending.
I would also recommend maxxing out your 401k if you have one.
However, 10-15 years ago the word on the street was the Govt was coming for those sooner or later. (I don't have a 401k).
Since I already had a pension coming I put all my money into CDs (yes, they did pay well before and they will again). TO save space here, research "LADDER CDs"...I did that too.
The thing about CDs is the money has already been taxed. It's yours. You just have to pay tax on the interest.
Here's where it REALLY helps in the future: After 12+ CDs (over the course of a year) you'll have 1 CD maturing. You have the option of cashing it in (if you need the money) or adding to it and rolling it over for another 12 months.
My 1st goal was $500, second 1k, then 3k, 5k, 10k 15k and 20k...EACH CD. I also have more than 12...Mission accomplished! ; ' )
I've been adding to every CD every month since 1989. I've never cashed one in either.
- StephenWeinsteinLv 71 month ago
Scores do not "update" on any specific schedule. They are recalculated each time that they are requested.
- A HunchLv 71 month ago
Your credit report existed the minute you applied for this card, if not before (apartment credit check, cell phone credit check, employment credit check, etc)
No, you don't pay off the credit card before the closing date.
You pay it on in full between the statement date and the due date.
* your credit score does not drop from carrying a balance. But it costs interest if you carry a balance.
- Anonymous1 month ago
Pay in full every month on or before the due date. Don't worry about Fico scores. Never carry a balance unless you like to give away money.