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TopicIs it myth that paying off your credit cards hurts your credit sorce?
Perascamin
02/28/21 3:50:38 PM
#40:


Kuuko posted...
Where people are confused is that credit cards have a statement closing date and a payment date. Once a month the statement will tell you how much you currently owe, which you have to pay by the payment date. You accrue interest when you don't pay off all of your balance before the payment date. You should never have that happen. It's just burning money away.

The incorrect logic of the "you should carry a balance" people is that credit bureaus can't see that you used your credit card unless you don't pay it all off and carry some of the debt into the next month. They are incorrect, because the credit bureaus only see what's on your statements. If you pay off everything you owe between the statement date and the payment date then you won't pay any interest and everyone can see that you used your card.

This sort of micromanaging on credit is silly anyway. Either way the difference is very negligible and the real secret to having a good credit score is just pay everything on time for a long time. You shouldn't spend extra money you weren't going to spend just to raise your credit score and you definitely shouldn't pay interest just to raise your credit score.
You don't get charged interest when you make minimum payment lmao

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