Carrying a high balance on your credit cards will help boost your credit score…False Tip! Doing that will actually hurt your score. You may be thinking…”I have to use credit to establish credit, so how do you expect me not to carry a balance?”
There is a difference between having a balance and carrying a balance. Having a balance means you make a purchase, wait for the credit card bill, and pay off the balance in FULL on or before the due date. Carrying a balance means you make the purchase, wait for the bill, and only make the minimum payment or a little more than the minimum payment, but you do not pay it off in full. As long as you make the payment on time (full or minimum payment), the prompt payment will reflect positively on your credit report, but who wants to pay interest at an 18%+ rate?
If you pay the balance off in FULL, you get a credit score boost and you don’t have to pay interest. That’s a 2 for 1 deal I don’t think anyone would want to pass up! Chao for now, Leslita.
