Hi all,
I have had a credit card for 7 years or so. Every month I would accrue a month's worth of expenses and then pay off the "current balance" on the 18th when payment was due. Between statement balance, current balance and minimum payment, this was always the biggest number so I figured I was doing the right thing.
A few months ago I went into my bank for something unrelated, and the teller (who also held a higher position at the bank) asked me why I had a balance on my credit card if I had the money to pay it off. I was confused, because from my understanding the credit card balance was just purchases occurring between the 18th and the next 18th registering on my account. I checked my credit score and it was 750+ so I didn't really do much about it.
Now, I see a post here about how great it is to have "zero balance" on your credit card. My card has a current balance of ~$200 even though I paid it off in full three days ago, because purchases have come through and immediately go to my balance.
To have zero balance are people paying off their cards every few days? Do I have a fundamental misunderstanding of credit cards? If so, how should I change my usage/payment of the card?
Submitted February 23, 2019 at 09:36AM by Gobbles15 https://ift.tt/2BNNzRu
