hpertrain wrote:
I kkep seeing posts that say keep at least a $5.00 balance on your revolving credit
card accounts versus a 0 balance. I'm in the habit of paying my credit card balance down to 0 after using one each month. Am I missing something? Should I pay the entire balance off except for $5.00,will that increase my score?
You always want to pay the entire balance off (if you can) before the due date, in order to avoid finance charges. What everyone is referring to is the balance at the time the statement closes. The statement balance is what reports to the CRAs and appears on your CR. You don't want to pay your entire balance before the statement closes, if you are trying to maximize your score.
If you intend to pay in full each month, and have a reason to maximize your FICO scores (such as preparing to apply for a mortgage or auto loan):
If your balance is less than 10% of your credit limit just before the statement closes, let that balance post and then pay it in full before the due date.
If your balance is 10% of your credit limit or more, try to pay part of it before your statement closes, so the statement balance is less than 10%, and then pay the rest before the due date.
If you don't have a reason to maximize your FICO scores at the moment, it really doesn't matter if you pay in full before the statement closing date.
