10 Myths About Your Credit Report - Part 2: It’s Better to Pay My Balance In Full Than To Carry A Small Balance Each Month
By Jay Fleischman, New York Bankruptcy Lawyer on Oct 8, 2007 in General Bankruptcy Information
It is financially wiser to pay your balance in full each month, but it’s bad for your credit score to do so. Potential creditors look for someone who pays more than the monthly minimum payment every month on a timely basis. Remember, creditors don’t like it when people pay their balances in full each month because then the creditor makes no money from that customer.
It’s a better idea to keep one credit card open, charge $100 on it, and pay $50 each month. Over time this will prove to prospective lenders that you incur debt, pay it responsibly, and can be counted on to do so in the future.
If you liked that post, then try these...
Mortgage Company Blames BAPCPA for Increased Foreclosures by Brett Weiss, Maryland Bankruptcy Attorney
Bankruptcy In Florida: Chapter 13 Two Years After Reform by Carmen Dellutri, Attorney at Law
Bankruptcy Law, The Internet, and The Consumer by Cathy Moran, California Bankruptcy Lawyer
You must be logged in to post a comment.