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Debate: Is it better to pay off credit cards in full each month or keep a small balance to build credit faster?
My brother swears carrying a $20 balance every month boosts his credit score, but I've always paid my cards down to zero since I opened my first one in 2017 and my score is fine. Who's actually right here, or is it just an old myth that won't die?
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smith.nancy2mo ago
Cutting through the backyard fence saved me twenty minutes" - yeah I get why people think carrying a balance helps, but that's like taking a shortcut that actually slows you down in the long run. I've never carried a balance on my cards, always paid them off every single month since I got my first one in 2017, and my credit score is in the 780s. The whole "carry a small balance to build credit" thing is a myth that credit card companies love because it means they collect interest from you. Your score is built on paying on time, keeping your credit usage low, and having a mix of accounts, not on paying extra money to the bank for no reason.
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