One of the costliest financial myths is the belief that keeping a balance on your credit card builds your credit score.
The Consumer Financial Protection Bureau confirms that carrying a balance is entirely unnecessary for building credit. Credit bureaus only require periodic activity reported on your account. Using your card for small monthly purchases and paying the statement balance in full builds your payment history identically.
Carrying a balance month to month does not boost your score. It only generates interest charges that drain your monthly cash flow.
Pay your statement in full every cycle to build your credit without paying extra.
Who first told you that you had to carry a balance?
