Thank you, holy shit, I get so frustrated seeing the most obviously-disproven misconceptions flying around even communities that purport to be savvy, lol.
Though one thing you didn’t mention that I think always should be: re credit card, don’t pay SO early that the agencies never see that you borrowed in the first place. In other words, wait until at least your statement date to pay your card (off, ideally). It’s your statement balance that gets reported, so if you pay before the statement cycle ends, the agencies won’t even know that the transaction(s) happened at all. Pay the card off anytime between your statement hitting, and your due date, and you’re golden, credit score improves, and you accrue no interest.
I’m pretty sure they see everything, but the way it’s chunked up can create artifacts. Balances are tabulated monthly, but they also see your payments. A higher balance means higher utilization which lowers your score. Paying early counts as a history of on time payment and lower utilization, which is good for your score.
Thank you, holy shit, I get so frustrated seeing the most obviously-disproven misconceptions flying around even communities that purport to be savvy, lol.
Though one thing you didn’t mention that I think always should be: re credit card, don’t pay SO early that the agencies never see that you borrowed in the first place. In other words, wait until at least your statement date to pay your card (off, ideally). It’s your statement balance that gets reported, so if you pay before the statement cycle ends, the agencies won’t even know that the transaction(s) happened at all. Pay the card off anytime between your statement hitting, and your due date, and you’re golden, credit score improves, and you accrue no interest.
I’m pretty sure they see everything, but the way it’s chunked up can create artifacts. Balances are tabulated monthly, but they also see your payments. A higher balance means higher utilization which lowers your score. Paying early counts as a history of on time payment and lower utilization, which is good for your score.
https://www.chase.com/personal/credit-cards/education/basics/should-you-pay-off-credit-card-early