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Rudeger

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I have been paying my CC fully every month. Good practice? Or keep a balance?
I have been getting different conflicting answers. Please don't guess if unsure.

Thanks in advance!

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To have optimum score from the utilization category is to have one credit card "report" 1~9% (not 0 or at 10%) of its limit and rest of your card(s) reported at zero. Keyword here is "reported", because credit card companies don't report your credit actives on the daily bases, so only on that one date they report your actives counts. For example, if your credit card reports on 15th of every month? Then whatever balances/actives you have between 16th to 14th of next month? Won't be reported till 15th of next month, and since credit bureaus doesn't know it, it won't affect your score one bit, if you had max your card or zero it out on 16th.........

Few things to keep in mind... It might take couple days to process your payment and be credited/posted on your account, so you might want to start payment few days before the reporting date... You don't need to carry balance from month to month and paying interest to do this, at worst? You might need to make another payment before the due date for my cards? The due date and reporting date are only bout 5 days apart, so one payment will satisfy both sides, I just make sure I don't charge anything till after the reporting date...You don't need to do this every month, only month or two prior to when you are applying for something big, let's say, if you are planning purchase a car in Feb? Then it doesn't matter what your score/utilization is on Nov... And depends which side of your score is on? doing this might not affect the outcome of application one bit or have huge impact, if your score is constantly around 750? Then 20 points one way or other, might not get you better interest rate or cause it to be denied, however if your score hovering around 600? Then that 20 points from utilizations could be the difference of you paying 3~4% less interest rate or being denied outright.

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Paying in full every month is the best way.  If you carry any balance, you end up paying interest on that amount. What is the sense of paying more for a purchase than you have to, and that's what you'd be doing if you maintain some balance due every month?

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For the best FICO scoring, let one card report a balance of less than 10% of it's credit line each month. You can pay it off before the due date to avoid interest, but make sure that you let it report (statement time).

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