Anonymous
Anonymous asked in Business & FinanceCredit · 2 months ago

Is it true that for a credit score to go up one should always carry a balance?

And not pay off the entire balance every month.

9 Answers

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  • Amy
    Lv 7
    1 month ago

    nope           

  • 2 months ago

    That is false.  To have a score go up, you must keep accounts in good standing, that is, make NO late payments and keep the percentage of available credit low.  Your score can still increase slowly if you carry a balance and pay interest, and of course the companies love when you do this, but if you can afford to pay in full, it's stupid to pay interest. Carrying a balance vs not carrying one does NOT raise a score.

    Closing accounts once they have been paid off CAN lower a score, though - for two reasons. One, it can make the percentage of available credit you are using go up. Two, it lowers the average age of all of your accounts. Older is better.

  • 2 months ago

    I pay off the high interest stuff as fast as I can....such as credit cards (8-9%) After that,  I make extra payment to the long term loan that has the highest interest rate. 

    I have an RV loan that is 4.5%,   a house loan that is 3.8% and  a zero percent loan on a lawn mower.    As I can,  I throw extra money at the RV loan as that is the highest interest rate loan I have.   The lawn mower loan I am going to just pay off the required amount as there is no interest.  

  • Anonymous
    2 months ago

    100% false. Who told you that? My score is 826 and I never carry a balance.

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  • 2 months ago

    Not true at all.

  • RICK
    Lv 7
    2 months ago

     Nope

    I never carry a balance my score is 812

  • DON W
    Lv 7
    2 months ago

    No.  That's an urban myth that is not at all true.

    You should pay your entire bill if you can.  That will keep you from paying interest on your credit card.  

  • 2 months ago

    No.

    There is no benefit to carrying a balance and paying interest.

  • Anonymous
    2 months ago

    Absolutely not.

    I've never had a held over credit card balance in my life and my credit score is over 800.

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