Originally Posted by GingersMom
Here is the difference: If you want to IMPROVE your credit score or FICO, then you do NOT want to pay off your credit cards in full every month.
I disagree with that statement. Whether you pay off the entire debt or not per month, the key is to pay the minimum payment
before the due date. That's what gives you your credit history. When you make any late payments, that's what effects your FICO score.
Your FICO score is based on 5 things:
1)Record of paying your bills on time: 35%
2)Total Balance on your credit cards
and other loans compared to your
total credit limit: 30%
3)Length of credit history: 15%
4)New accounts and recent apps: 10%
5)Mix of credit cards and loands: 10%
I always paid off my balances every month (up until the last couple of months) and I was always well above the "Best" mark. Now I just make sure that a regular monthly payment gets made and my FICO has remain the same.