Credit card owners are always trying to pay their bills by the end of the month, as it helps them stay out of debt and build a great credit score. And we all know how many of them are struggling with this!
If you’re among those who want to pay the balance in full more often, so your card will never get in the red, we have some good news for you: you can actually pay your credit card bill more than once per month. But hey, once is just enough!
How to obtain zero balance? Well, it’s pretty easy!
“If you’re paying with every single transaction, it may not even show that you’re even using credit and it’s reporting to the credit bureau as a zero balance all the time,” said chief financial analyst at Bankrate Greg McBride, according to a report from CNBC.
And if you’re after that nice credit score, which brings a lot of advantages, you can also clear your balance frequently, as this shows that you’re not using your credit card at all.
“To build credit, what you want to do is have a demonstrated track record of using credit responsibly, and over time different forms of credit,” |Mr. McBride added. “With regard to revolving lines like credit cards, you want to demonstrate the ability to put expenses on the card and then to pay that off.”
In order to demonstrate the latter, it’s highly recommended to focus on not letting your balance surpass more than 10 percent of your credit limit, no matter the time. Basically, this 10 percent is the point at which it’s still beneficial for your credit card. On the other side, if you exceed 10 percent but don’t go over 30, it will remain neutral, while when your balance is above 30, you should start worrying about your score.
Yes, you can have more than one card
To wrap it up, if you manage to pay your credit card balance in full every month, you can actually consider opening multiple accounts. This will surely help you boost your credit score, as it increases your amount of available credit. Besides, let’s not forget about the perks they bring, acting like rewards cards: airline miles, hotels points or cash back. And believe us, these can seriously pay back, if used properly!