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smrositer

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Is it better to leave a small balance on your card or to completely pay off your balance every month

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If you leave a balance, then you pay interest and that is actually a waste of money, don't you think?  Paying in full every month is best.

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Pay in full by the due date. Sometime between the due date and the closing date, buy something small and don't go over 10% utilization. That way you get the best of both worlds--you're not paying interest, but the creditor will report a balance to the bureaus. Zero utilization isn't ideal for your score, because then nobody knows whether your card is active (and you're a responsible steward of your credit) or in a sock drawer.

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If you really want to improve your score

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pay oiff your balance every month,   Also  let it report a 0 balance 2 or 3 times a year by not using it for a month. When you use a card constantly, even paying it off every month, it can actually have a negitive effect.  i.e. if you use your card and charge say $500 and you pay the bill when due, But you continute to use that card the next month and charge another  $475. then it appears as only a $25 change on your report.  That appears as if you only made a minimum payment. with no new charges.  They don't see it as being paid off or not. your report does not show the amount you paid only the difference from this month from last.  By letting it repoirt a $0 balance once in a while shows that you paid off the account in full.  

I put my cards into a rotation only using 2 cards at a time. Any card with a balance is not used again until its been paid off completely.  This shows that you do not rely on credit cards to much and that you manage balances well.

hope that helps.

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Always Pay the Balance in Full each month.   If you can't Pay in full stop using the Credit Cards. 

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