Home / Weekly Credit Tips / Leaving Monthly Balances Won't Boost Credit Scores

Weekly Tips

Leaving Monthly Balances Won't Boost Credit Scores

You've probably had friends tell you how they established their credit history faster by leaving monthly balances on credit cards instead of paying balances in full. Hope you didn't fall for this one!

The truth is this happens to be one of the most common credit myths out there, so make sure you talk some sense into your friends the next time you hear it, OK?

A consumer who carries a revolving credit card balance each month simply will not establish credit any faster than someone who pays the balance in full. The only difference is the individual who carried a monthly balance will have paid much more in interest charges over the same amount of time.

So which person would you rather be? Choose to be a smart consumer- live within your means and pay off your credit cards each month. Both your wallet and your credit scores will thank you.

on Thu, 2012-05-24 17:00