Credit Card Balances – do people think this is good for credit scores?

Deal Score0

Seems like a lot of people think it’s good.
Sorry to give someone thumbs down.
Credit scores actually go down when you open a new credit card for 6 months after you open.

Paying in full for all of those 6 months, will get you top scores, after the initial “new credit” timeframe.

  1. Reply
    Michael M
    November 10, 2011 at 1:59 pm

    Teh experts say the best way to a high score is to have no balance, to keep it paid on time monthly. I have to agree with this point.
    Mine is paid and mys score is really good.

  2. Reply
    November 10, 2011 at 2:38 pm

    It’s best to carry a small balance for 6 months to a year, before paying it all off at once. This is because it will BUILD your credit rating. If you open a card and pay it off completely every month, your rating will not be positively (or negatively) affected.

  3. Reply
    Nathan E
    November 10, 2011 at 2:50 pm

    It’s not the balance, it’s the utilization. Having credit cards that you never use is bad, but not as bad as having credit cards that are maxed out all the time. You should try to maintain a credit utilization of around 30%, and pay it off every month; that is, if you have $ 1000 credit limit, you should charge roughly $ 300 to it every month, and pay it off EVERY MONTH. This is the best use of credit typically, and will result in the best bumps to your credit score. But there are many other factors that play into it. Also, you’ll want to use the card with the longest history.

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