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Question By
Rikoa

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20 People Helped
Pay off credit cards completely, or leave a small balance?
So I'm trying to improve my credit score. I'm just below 600 so I don't have too far to go. I have 3 open credit cards. They are Best Buy $300 limit, Capital One $500 limit, and GE Bank's Care Credit (used for vet bills and dental expenses) which is newly maxed out at $700 due to recent dental work. I work sales, get commission and come January thanks to Christmas, I'm hoping to pay a lot of these down.

My question is should I pay them off completely and spend a certain % every month then pay them off again OR should I pay them off and only use them when I need to use them?

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pay them off completely no need to carry a balance and pay interest doesn't benefit your score only costs you $$......and the % you want to aim for is 20% utilization so best buy card don't use more then $60....Cap 1 no more then $100 dental card no more then $140.....and try to use the cards once every few months to show activity excluding the Care card unless you can use it to buy flea repelent you can use them every month if you want just try not to go over 20% this is the ideal percentage 1%-20% to maximize score potential and going over 35% will have a negative effect on your report so when you pay off that care card you should see an increase score wise atleast 10 points....most likely more 

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