Reading yahoo answers on credit. I read in some entries if you want to built your credit rating.?

It is not good to pay your credit accounts in full when do? True or false?

Reading yahoo answers on credit. I read in some entries if you want to built your credit rating.?
False... it is absolute the best thing to pay off your credit accounts


every month.





What you shouldn't do is just make one charge, pay off the


account and never use the account again. That does not show


a lender that you are using credit wisely.





But making small purchases every month and paying them off


completely is probably the wisest way to use Credit Cards.






Reply:It basically does not matter if you do these previously listed techniques or not. What matters is if you have a 0 balance at the time your score is pulled. If you have a zero balance then your score will be the highest it could be. The 3 credit bureaus report an "OK" every month that you did just that "OK". That means that you did not default your terms of paying agreement. 95% of your score is determined by these 3 factors.


-How long the card is open, available for use? (Length of Time Accounts Active)


-How low is its balance? (Available Credit)


-How many months did you NOT default ("Ok's")? (Payment History)
Reply: Both. You want to prove on your credit history that you will pay people back. You can do this by either keeping a balance on a card and paying some, but not all of the balance each month or you can use your at least once a month and pay the whole balance so you don't have to pay interest. Either way will help your credit score, it just depends on what you wish to do.