Anonymous asked in Business & FinanceCredit · 1 month ago

Is it best to pay off credit card entirely before using again?

My card is one month away from being paid off in full, but I am in "desperate" need of clothes and a few other important things.  I never spend more than 40 percent of the card limit or anything and always pay quadruple the minimum monthly payment amount.  Just kinda curious if it even matters if the card gets loaded again prior to pay off or do the credit companies notice this and drop your score?  Or does the interest carry over and get higher and higher because the card never got paid in full?


Why carry it with me?  First of all, I am not rich otherwise I wouldn't have to.  Secondly, I take as much opportunity to establish credit when ever possible. 

Not sure if you've noticed, but it's expensive to exist in society. 

4 Answers

  • n2mama
    Lv 7
    1 month ago

    Your credit utilization does impact your credit score. You don’t have to pay the card off in full before using it again, it’s more about what your total utilization is. As StephenWeinstein said, keeping it under 30% total utilization should be the goal. The interest you get charged will be on whatever the total balance on your card is. So if you had a balance of $200 and you charge an additional $500 on the card, your interest will be based on $700. So the higher balance you carry the more you owe in interest, which generally makes it harder to pay off. Credit cards generally have very high interest rates and while it isn’t a bad thing to have one, if you have to carry a balance because you are buying things you can’t afford it isn’t the best usage of them. It’s one thing to have an emergency car repair that hits unexpectedly, using it to buy clothes is something else. If your clothing need is desperate, go to resale shops.

  • 1 month ago

    You can if you want, but it's not at all necessary.  However, you should try to hold your balance to below 30% of the limit at all times and below 10% if you are trying to build your credit score.

  • Anonymous
    1 month ago

    Its "better" to never pay interest.

  • Anonymous
    1 month ago

    Pay off your debt why keep carrying that with you 

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