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Question By
myersmarkl

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Why does carrying a balance, from month to month, affect my score so much?
I do not want or need to carry a balance from month to month. Unfortunately credit scores are used for more than just obtaining credit. They also affect some insurance rates and eligibility for some jobs.

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Top Contributor
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Pay bills in full!!!

Helpful to 1 out of 2 people

You do not want to carry a balance every month on your credit accounts, because you're paying additional money in the form of interest.  Pay what is due on the account statement every month (and I do mean the TOTAL).  Do this every month and you should find your credit score improving.  If you can't pay the total, pay as large an amount as you can so you can get the account paid in full.

NEVER pay just the minimum on a credit card unless you want to be paying for years on something you could have taken care of within a couple of months.

Hope this helps you.

Reply by
myersmarkl

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I do not carry a balance because I pay the total due so that I am not charged interest.   Yet CreditKarma shows me as a grade C for credit card utilization.  Furthermore the Cedit Report Card page says that credit card utilization  has a HIGH impact on your credit score.   I make it a point to live within my means as much as posible.

My score at TransUnion, CreditKarma, is 40+ points less than EquaFax and Experian an it has been significantly lower for over 6 months.  According to CreditKarma the lower score appears to be caused by my not carring a monthly balance on credit cards. 

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