Should I carry a balance on my credit card?

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ioesha
 
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Should I carry a balance on my credit card?

Postby ioesha » Mon Sep 16, 2013 12:54 am

True or False. To get the best credit score possible, is it better to carry a small balance on your credit card?

Or is the opposite true- it is better to have no debt whatsoever and always have $0 reporting.

Please advise as I have read conflicting advice in both camps on another forum.


RewardHop
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Postby RewardHop » Mon Sep 16, 2013 11:24 am

FALSE. Absolutely do not carry a small balance.

It is better to Pay In Full once your statement arrives. If you are looking to get additional credit products (loans, cards, etc), then its a good idea to pay in advance of the statement to bring down your credit utilization. You don't need to fully pay it off before the statement end date, just enough to bring down you percent utilization. If you have a high % utilization of your available credit and a lender/credit card issuer sees this when you apply for something, they will see that you're using a lot of credit and will be less inclined to issue you more credit.
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Barclaycard Rewards Visa Signature: 2% gas, groceries, utilities
Capital One Quicksilver Visa Signature: 1.5% everything
Chase Freedom Visa Signature: 5% rotating
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takeshi
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Postby takeshi » Mon Sep 16, 2013 12:31 pm

RewardHop wrote:If you have a high % utilization of your available credit and a lender/credit card issuer sees this when you apply for something, they will see that you're using a lot of credit and will be less inclined to issue you more credit.

Not what the OP is asking. FICO scoring does seem to favor a small amount of utilization (under 10%) versus no utilization at all. It's really up to each to determine if this sort of fiddling is really worth the effort. I personally don't bother with it.

ioesha wrote:Please advise as I have read conflicting advice in both camps on another forum.

Test it out for yourself and you'll have a definitive answer. You're already getting conflicting answers here so I'm not sure what you're expecting from yet another thread on this matter.

RewardHop
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Posts: 307
Joined: Wed Jan 02, 2013 3:43 pm
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Postby RewardHop » Mon Sep 16, 2013 7:46 pm

takeshi wrote:Not what the OP is asking.


Worrying about the 0% util is nonsense. Theres much bigger things that affect your credit score such as what I mentioned.
[size=60]

Amex BCE: 3% grocery, 2% gas

Bank of America Better Balance Rewards MC: $25/quarter bonus

Barclaycard Rewards Visa Signature: 2% gas, groceries, utilities

Capital One Quicksilver Visa Signature: 1.5% everything

Chase Freedom Visa Signature: 5% rotating

Citi Forward Visa: 5% restaurants/fastfood, movie theaters, amazon.com

Discover It: 5% rotating

SallieMae MC: 5% Groceries, Gas, Amazon

US Bank Cash+ Visa Signature: 5% electronic stores, restaurants

Sock Drawered: Chase Sapphire, Chase Amazon[/size]



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