Are You Accidentally Lowering Your Credit Score?

There is a lot of conflicting advice about credit, so this week we’re setting the record straight on what actually moves the needle.

Myth #1: You should carry a balance to boost your score. This is one of the most persistent (and costly) misconceptions out there. It likely comes from a misunderstanding of credit utilization. Lenders do want to see that you use your credit, but they prioritize how responsibly you manage it. By paying your balance in full, you keep your utilization ratio low and avoid interest charges. It’s the most effective way to show you’re a low-risk borrower and you don’t lose money to monthly interest.

Want to avoid more credit traps?

Find out if checking your own credit hurts your score.

Should you always close a credit card if you’re done using it?

Ready to go deeper? Join our upcoming session, “How to Make Your Credit Score Work For You” Tuesday, January 20th at Noon Eastern. We’ll skip the jargon, explain the “secret formula” behind your score, and show you how to reach the “excellent” tier.

Register here to attend this free event.