Am I using my credit card correctly?
I'm new to the credit card. I have it with bank of america. I have the bank of america app and i have three accounts on the app. Checking, Savings, and Rewards Card which I am assuming is the credit card. Each time i pay something i transfer money from my checking to the rewards card account as the exact amount i just used. Is that how you use your credit card or am i throwing money away??? People gave me advice but i cant really trust them because they have a horrible credit score. So anyone with experience can you please enlighten me???
- SlickterpLv 72 months ago
That is a smart way to do it. You are not in any way throwing money away. You are saving money by not letting a balance carry and interest accrue.
- StephenWeinsteinLv 72 months ago
It's fine, but really unnecessary. You can usually make do with just one transfer a month. Basically, you should (1) keep the amount you owe (what you used and haven't yet replaced with a transfer) below 10% of your credit limit, and (2) between each statement closing date and the next due date, transfer at least as much as the balance that was on that statement (so that, by the due date, you owe only for what you used after the closing date).
- Anonymous2 months ago
Its nowhere near as complicated as you seem to think. I pay my credit card bill once a month, every month via autopay. No apps are involved or needed.
- EvaLv 72 months ago
You aren't building your credit score by doing it that way. You need to wait until the statement is issued and then pay it. You're using your credit card like a debit card. You aren't throwing money away and your card is always paid, but as I said it won't help build your credit.
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- JudyLv 72 months ago
That's one way, and it's ok to do. You can also wait until the end of the month, and pay when they send you a statement, if you'll still have the money. You can pay just part of it and wait until the next month to pay more, but that's not a good idea. They'll charge you interest, plus it's easy to let the bill get bigger and bigger until you can't pay it.
- Rick BLv 72 months ago
That is a lot of work. Why don't you simply pay the credit card balance in full at the end of each month when your statement arrives???
If you are going to pay every single transaction, you should just use a debit card.