Money Girl has the scoop on making wise credit decisions
Q. Is it better to pay off your credit card balance in full each month or leave a balance in order to build credit?
A. It's far better to pay off your credit card in full each month.
While it's a fact that you have to use credit to build credit, carrying a credit card balance from month-to-month doesn't increase your credit score -- it just increases the amount of interest you have to pay! The best way to build credit is to pay bills on time, charge no more than 30% of your available limit on credit cards, have a mix of credit types (credit cards and installment loans), and accumulate a long credit history.
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