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CreditCardCurious

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I just opened a Cap One Platinum Card. Should I carry a balance of pay it off in-full every month?
I've heard of carrying a balance to help your score, but I'm still a bit naive and don't quite understand how that works...

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Opinion seems to be split here, let's see if I can equivocate. ;) It's always best to try to pay off in full each month, but if that's not possible, then the next best thing to do is to carry a modest balance, keeping your utilization below the magic 30% mark (under 10% as previously suggested is optimal but that may not always be practicable either), and pay off as much as you can every month (always more than the minimum). If you can afford it, making multiple payments (at least 2) each month is also widely reported to be helpful. The fundamental thing is that you want to demonstrate that you're responsible in using your credit, so either pay it off in full every month or keep your utilization under the target 30% and pay off as much as you can every month.

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yankees992012

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I would agree with those who do carry a very small balance than pay it off to zero. Creditors only see if your using the card or not. By having zero balance every time does not make your credit score increase. It would be the payment history is what makes your credit score increase. Let's say you have a credit line of 1000 and only leave a balance of 50 dollars, that is under 10 percent utilization rate.  Often times Statement balance and Due dates are different. You would only get charged with interest if you dont pay it off the statement balance by the due date. By keeping it under 10 percent but more than zero percent would make the credit score go up even higher. 

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Paying interest when not absolutely necessary is a waste of money.  Paying in full every month is the smart move.

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PAY IT OFF

I WOULD PAY IT OFF AS SOON AS YOU CAN DON'T CLOSE THE ACCOUNT BECAUSE THAT AFFECTS YOU SCORE ALSO.  CHECK TO SEE IF YOU CAN GET A BETTER RATE  WITH YOUR BANK OR CREDIT UNION.  

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Carry a small balance

It has been my experience that carrying a small balance between 2% and 10% positively impacts your score. Any amount above 30% drastically decreases your card.

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Pay off, but make sure to use it

It's best to pay it off each month, and then only 20% or less of your limit.  This should help to give you a healthy credit score.  Having a credit card on your account with no money on it, doesn't do anything for your credit.

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