How Will a New Credit Card Bill Affect Me?

A new credit card bill means you started using a credit card account for purchases or balance transfers. The transaction itself, and the way you handle the bill, affects your credit reports and score. Credit card use benefits you if manage your accounts responsibly by keeping balances reasonable and paying on time, but it hurts you if you spend too much, or fall behind on your payments.

Debt Load

The owed balance and amount you pay on your new credit card bill affects your credit score. MyFICO, the Fair Isaac Corporation scoring website, explains that large outstanding balances hurt you. You eliminate that result if you pay the entire amount owed. Otherwise, the balance figures in your credit score although negative effects decrease as the total goes down with each month's payment.

Payment Date

Your new credit card bill shows a payment date. Your payment must arrive by that date to avoid a late payment fee and delinquent entry on your credit report. MyFICO warns that past-due payments are one of the worst detriments to a good credit score. Call the bank and ask to change the due date on your new bill if the current deadline is hard to meet because it does not align with your paydays. Holden Lewis of Bankrate.com explains that many credit card issuers are willing to make this change upon request.

Credit Report

Your new credit card bill generates new information on your Equifax, TransUnion and Experian credit reports. The credit card account will show the owed balanced, if you pay the new bill on time and how much the balance decreased and the credit line increased after payment. A 2007 report by survey company Zogby International advises that 37 percent of credit reports had errors, so reports of your account activity might be incorrect. Check your credit reports through annualcreditreport.com, the government-mandated free report source, and notify the credit bureaus of any inaccuracies through their website forms.

Considerations

Your new credit card bill shows a minimum amount, as well as your total balance. You must pay at least the minimum to keep the account in good standing, although you are free to send more. High balances take years to pay in full if you stick to the minimum. The Board of Governors of the Federal Reserve System explains that federal law requires banks to print the repayment period and the actual amount you will pay, including interest charges, on your statement. This shows the long-term effect and cost of only sending the minimum.