The Motley Fool Discussion Boards

Previous Page

Personal Finances / Credit Cards and Consumer Debt


Subject:  Re: Building Consumer Credit Date:  4/24/2013  9:25 PM
Author:  aj485 Number:  306919 of 312187

Is it bad for your credit score to maintain large balances on your credit cards, even though paid on time, rather than paying smaller, more frequent amounts?

As long as you pay on time, and your lender allows you to make payments as often as you want to make them, from a credit score perspective, it doesn't matter how many payments you make throughout the month. What is more important to your credit score is: What is the balance on your card, compared to the amount of credit you have available? If you are aiming to get the best credit score, you should never use more than 10% of your available credit. So if your available credit on one card is $4,000, you should never let the balance on that card get above $400.

Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us