Author Topic: Paying off your credit card  (Read 65 times)

xetog

  • Hero Member
  • *****
  • Posts: 8659
Paying off your credit card
« on: Oct 09, 2019, 09:06:26 AM »
Apparently half of those who use credit cards do not pay off their balance at the end of the month and therefore pay interest on what they have borrowed. If this is you MSE Money Tips suggests that you switch to a 0% interest card for your purchases.  I, along with I imagine the other half of credit card users who do pay off their balance every month would ask you not to do this, otherwise credit cards will disappear because they won't make any money for the banks.  It is the interest paid by the 50% who pay it that allows the rest of us to pay no interest for the convenience of borrowing money for a month and not bothering with cash.

Mike.X
If you want to control peoples thoughts, first control their words.

Michael Rolls

  • Hero Member
  • *****
  • Posts: 10137
Re: Paying off your credit card
« Reply #1 on: Oct 09, 2019, 09:15:08 AM »
Good thinking! Although |I normally use a debit card and keep it in credit
Mike
The older I get, the better I was!

Diasi

  • Hero Member
  • *****
  • Posts: 5358
Re: Paying off your credit card
« Reply #2 on: Oct 09, 2019, 09:46:50 AM »
Apparently half of those who use credit cards do not pay off their balance at the end of the month and therefore pay interest on what they have borrowed. If this is you MSE Money Tips suggests that you switch to a 0% interest card for your purchases.  I, along with I imagine the other half of credit card users who do pay off their balance every month would ask you not to do this, otherwise credit cards will disappear because they won't make any money for the banks.  It is the interest paid by the 50% who pay it that allows the rest of us to pay no interest for the convenience of borrowing money for a month and not bothering with cash.

Mike.X

You've raised an interesting subject.

A year ago I had an excellent credit rating which was only two points below the maximum score possible.

Today my credit rating is down to a mid-way fair rating.

Have a guess what the reason is, without Googling to find out, which is what I had to do.

I couldn't believe what I was reading.
Make every day count. Every day is precious.

xetog

  • Hero Member
  • *****
  • Posts: 8659
Re: Paying off your credit card
« Reply #3 on: Oct 09, 2019, 09:50:20 AM »
Diasi, be careful, you could be the victim of identity theft and someone else may have taken out credit in your name.  Check your credit report quick.

Mike.X
If you want to control peoples thoughts, first control their words.

brian54

  • Hero Member
  • *****
  • Posts: 6548
Re: Paying off your credit card
« Reply #4 on: Oct 09, 2019, 10:18:35 AM »
I still have an excellent credit rating but I took hire purchase on my new car and paid it off the same day to get the 1000 Honda Finance Contribution and my rating went down 20 points.

I will check it again soon. I don't think the bailiffs will call for 0.00.

Diasi

  • Hero Member
  • *****
  • Posts: 5358
Re: Paying off your credit card
« Reply #5 on: Oct 09, 2019, 10:28:46 AM »
Diasi, be careful, you could be the victim of identity theft and someone else may have taken out credit in your name.  Check your credit report quick.

Mike.X

Good logical point.

That was my first thought, but that's not the reason.
Make every day count. Every day is precious.