4 ms·
It’s actually a myth that carrying a balance does anything to your credit score. Low utilization of your credit limit and long history of the credit line, combi
by cyberlurker 4y ago
It’s actually a myth that carrying a balance does anything to your credit score. Low utilization of your credit limit and long history of the credit line, combined with history of on time payments is what matters.
You get a higher credit limit if they think your income is higher.
Also, parent poster is likely paying interest, which is the worst thing you can do on a credit card.
- JamesSwift 4y agoAnd yet I regularly have credit karma and others go up-down if I pay off before or after the company reports "average monthly balance". Its usually by a large amount too, 15-30 points.
- mise_en_place 4y agoUtilization has the lowest impact on your score. By your reasoning, homeowners with a mortgage should have a terrible credit score, when in fact it’s usually the opposite.
- zamadatix 4y agoUtilization is 30% of your credit score making the 2nd largest single factor, behind only payment history (35%). That said utilization only counts revolving credit sources. That means installment loans like home and auto loans are not part of that particular factor.
- mise_en_place 4y agoAh my mistake, I didn’t realize they don’t count installment loans as part of utilization.