The big credit score myth

The big credit score myth

 The Big Credit Score Myth

Paying down your credit card balance to zero every month may seem like the best way to boost your credit score…and we’ve all been told to pay our credit card debt in full each month, but this may not be completely accurate.



How does it impact your credit score?

While it may be a great money habit to pay off your credit card debt every month, it could impact your “utilization.” Most lenders report the balance on your monthly statement in relation to your credit limit. This is often referred to as your “utilization” and accounts for 30% of your credit score.

What should your utilization be?

If at all possible, you want to keep this below 25%. For example, if you have a $1,000 credit limit you want to make sure that the balance on your monthly statement does not exceed $250.00.

Pay attention to what is reported on your statement and if it is higher than what you would like consider making additional payments prior to your lenders billing cycle.

You can find additional details on how your cred score is determined by visiting