Does not paying in full hurt your credit score?

Anonymous · ‎02-19-2015

I was having a conversation with one of my colleagues (who is also very in CC and reaping the rewards) when he told me he wouldn't be able to pay in full this month on one of his CC. He then went on to say that it'll hurt his score. I told him that I've always PIF so I don't really know if not paying in full will necessarily "hurt" you score so I though I'd ask here. Will it. Does not PIF hurt your score or does it just not improve as fast or as much as paying in full? Say you pay a balance off over a couple of months, always paying over the 25-35 dollars. Will this hurt or will you just not improve?

Anonymous · ‎02-19-2015

It depends. If it's only one card that reports a balance, and the util on that card is less than 10% it will likely actually help his score. One of the perverse things about Fico scoring is that 0% utilization is worse than tiny utilization.

Anonymous · ‎02-19-2015

No, I'm pretty sure it's not his only card he has about 7-9 but as far as his UTL idk. I actually had to think about it myself because I never though about it carrying a balance affect your score.

Anonymous · ‎02-19-2015

If all your cards are reporting a balance yes it can lower your scores.

Closingracer99 · ‎02-19-2015

@Anonymous wrote:
It depends. If it's only one card that reports a balance, and the util on that card is less than 10% it will likely actually help his score. One of the perverse things about Fico scoring is that 0% utilization is worse than tiny utilization.

You'll don't have to worry about 10% util unless your planning on taking a HP for a CC, loan or etc. I wouldn't go at 50% but long run it dont matter as long as your paying it off imo

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taxi818 · ‎02-19-2015

Regardless of how many cards he has it will not hurt his score unless as other poster stated. he is carrying balance on all of his cards. but just carrying a balance alone. will not hurt score unless you are over 50 percent or more. in fact. in most cases. just depending on utilization. which your friend does not understand obviously. it will help score. just keep it under 30 percent and scores will be stable. just when you need every point then worry about the 10 percent thing. remember. Payments. on time. rule. 35 percent.

Utilization is close second. 30 percent of score. so balance or not . scores will be fine. the average score. changes. 10 -20 points each month anyway. no need to be a fanatic about it.

Anonymous · ‎02-22-2015

Carrying a balance does not hurt your credit........

PIF doesn't have to be before it reports, it can be after the statement closes... You pay the balance. You're still paying in full... It's already reported to the CRA's. You guys are digging too deep on this topic.

That being said.... Can it hurt your relationship with the creditor... Most definitely.