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Originally Posted by MrsChambers
#2 you having that CC and paying it IN FULL each month... basicly, your credit report is showing that you have this CC, with this limit, but each month, sense you pay it off in full each month, it's always reporting a 0 balance.... the best case would be to carry a MAX of 30% utilization on your credit card(s).... this way it shows that you have credit, and you are properly using that credit.... with paying off your bill each month, you have established that you have credit, but not that you know how to properly manage that credit... get it?
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I'm sorry but this is not good advice. First, there's a lot of debate going on about whether this is even true (that keeping a balance on your credit cards improves your score). Even if it is true, we're talking a very small increase to your score (and how much money is blown on interest in the meantime?).
Regardless, there's no way that MFM's credit score dropped 100 points simply because she paid off her CC's every month.