Myth #3: Always pay your credit card balance in full and that will give you the best credit.

The problem is if you have no balance, if you leave your credit card with no balance, you'll have no payment history. You'll want to leave a little bit of balance on your credit card every month (Ideal amount is 1%), to show that you can pay on time. Don't just pay off a balance and leave it at zero balance account ongoing, because after six months it's typically at as an inactive account, which give you really no major positive. Where, if you use the account every few months, and leave a very small balance on it, then it will help you.

The way FICO looks at it, if you have no balance, they don't know whether or not you can pay it, because you're not getting a bill. You have no obligation to pay. So that's a strong part of it, and so you should always keep a very, very small balance, as small as you possibly can, is what you're advising your consumers to keep on their credit cards.

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[TheCreditProsIntl]

There is no threshhold that you pass that will plummet your credit scores, i.e. 29% good and 30% bad. Miraclemanays is correct that the credit card companies report every month but know the reporting cycle they use because you want the paid balance to reflect on your account before they report. If your payment posts after, you will not get the benefit of the payment. I am availavble to talk in detail I am happy to help to advise them. Please stop being so angry! I am here to help.

[TheCreditProsIntl]

I shouid probably read the posts more often because it seems as if I am being rebutted with false information. With all due respect Blackdragon1911, wasting money on interest has nothing to do with the credit scoring model. A function of FICO actually indicates that accounts with balances will benefit you rather than 0 balances. The 30% number that miraclemanays is speaking of is made up. You want your balances as close to zero without being zero.

[blackdragon1911]

This is complete nonsense. Make sure to pay your balance for the transactions from your last statement in full. Revolving on credit cards is one of the stupidest thing you can do. You are just wasting your money on interest. I pay off my balance every month and my FICO has gone nothing but up. So I have no clue the uploader is taking about.

[miraclemanays]

@miraclemanays If you pay your balance in full, but max out your credit limit during the statement cycle, it will be reported as being 100% utilized regardless of the balance being paid off completely. It's disturbing that you are a "credit repair pro" and advise your clients as such.

[miraclemanays]

This is patently false information. I work for a major credit card company. Your balance is reported to all three credit bureaus during the statement cycle whether you pay your balance off in full or not. You want to keep your utilization as low as possible, preferably below 30% of your available line. Even if you pay your balance in full, whatever your balance is when it is reported to the credit bureaus is what will be reflected on your credit report. However, the opposite is true.