Quick credit question
- Thread starter SithSolo1
- Start date
SoulAssassin
Diamond Member
- Feb 1, 2001
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dullard
Elite Member
- May 21, 2001
- 26,201
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Only one real answer: PAY IT OFF.
Your credit report (and thus your credit score) does not say if you keep a balance from month to month. Thus, carrying a balance can't help your score but it will cost you a lot of money. Why pay a lot of money for no real reason?
Note: Your credit score does include what you currently owe (this is different from how much was unpaid from last month's bill). You must keep what you currently owe to under 30% of the total amount you can borrow.
Your credit report (and thus your credit score) does not say if you keep a balance from month to month. Thus, carrying a balance can't help your score but it will cost you a lot of money. Why pay a lot of money for no real reason?
Note: Your credit score does include what you currently owe (this is different from how much was unpaid from last month's bill). You must keep what you currently owe to under 30% of the total amount you can borrow.
As far as reporting is concerned, you always have a balance unless you use the card once every few months.
Actually, wrong. Having lots of open credit and never showing a balance is not a good thing.
One of the negative remarks on a report, on all three bureaus, reads like this:
"Lack of recent revolving account information"
Small balances are a good thing. It proves that you can rack up some debt and pay it off.
If you have 6 credit cards, but have never shown that you can pay back debt, that is a bad thing.
"Your credit report (and thus your credit score) does not say if you keep a balance from month to month."
Correct - But there is a field called "balance" which is considered as part of your score. It's the monthly balance. So as Ocguy also noted in a different way - not using avail credit is less beneficial to your score than a zero balance. It proves that a creditor is actually making money, and that if they give you credit - you'll use it.
Keep it <10% (0-5% some even mention) - for max benefit.
Correct - But there is a field called "balance" which is considered as part of your score. It's the monthly balance. So as Ocguy also noted in a different way - not using avail credit is less beneficial to your score than a zero balance. It proves that a creditor is actually making money, and that if they give you credit - you'll use it.
Keep it <10% (0-5% some even mention) - for max benefit.
kranky
Elite Member
- Oct 9, 1999
- 21,020
- 156
- 106
You don't understand what dullard is saying. He didn't say never use any credit. He's saying you should pay your balance in full when you use it to avoid finance charges. Your credit report will still show a balance and that balance will depend on what day the bank reports to the credit bureau.
Pay in full. If you carry a balance, and the credit people whimsically change the rules on you, you can accidentally pay late one month and then your credit score will go down. Never pay late.
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