Is it better for scores to pay off entire balances each month or just more than the minimum payment? Steph
It is best to pay in full when you can...BUT your credit report will say you NEVER pay in full because you pay in full, but the next month you buy more... I learned this the hard way. I learned to pay in full BEFORE the statement is generated, including new purchases, or change cards...use CARD A for one month...second month use CARD B...third month use CARD C. My DISCOVERCARD was ALWAYS PAID IN FULL...but it "LOOKED" like I NEVER did... BUT NOW DISCOVERCARD WILL HAVE A $0.00 BALANCE FOR MONTHS...MAYBE EVEN YEARS...(I'M STILL WAITING ON A CREDIT LIMIT INCREASE WITH-OUT A CREDIT REPORT)... THEY ARE LOSING THEIR CUT OF $900.00/WEEK...
If you can pay your bills off in full every month then by all means do so. Timely payments and low debt ratios will in time give you higher scores.
I agree with both posters below as far as scores are concerned, however if you want to receive BT with teaser rates and higher limit increases, carry a balance, you do not have to carry it for long or for a very large amount. Carrying a balance has worked for me and for everyone that has tried it. I have over $140,000 in lines and both my sister and my wife have built portfolios in the 6 figures within years. www.creditsense.com
