02-02-2012, 01:31 PM
HAULN-SS Wrote:Btw, you guys should carry some amount of a balance on your credit cards, if you're trying to build credit
False. While credit availability is a huge factor in determining risk, carrying a balance and paying interest DOES NOTHING to improve your credit score.
Credit cards hit your credit reports as a snapshot in time. If your bill closes with a $500 balance, that is what's reported on your credit. If you pay it all off and your next month you have a new $300 balance, that is what is reported. They don't know or don't care whether you only paid $200 and carried the balance or paid it all off and had new charges. All they care about is that you had activity and your debt amount isn't climbing steadily.
If you're concerned about being dinged for too much credit availability, ask for a lower limit on your credit card. Paying interest does absolutely zilch except cost you money.
'76 911S | '14 328xi | '17 GTI | In memoriam: '08 848, '85 944
"Here, at last, is the cure for texting while driving. The millions of deaths which occur every year due to the iPhone’s ability to stream the Kim K/Ray-J video in 4G could all be avoided, every last one of them, if the government issued everyone a Seventies 911 and made sure they always left the house five minutes later than they’d wanted to. It would help if it could be made to rain as well. Full attention on the road. Guaranteed." -Jack Baruth
"Here, at last, is the cure for texting while driving. The millions of deaths which occur every year due to the iPhone’s ability to stream the Kim K/Ray-J video in 4G could all be avoided, every last one of them, if the government issued everyone a Seventies 911 and made sure they always left the house five minutes later than they’d wanted to. It would help if it could be made to rain as well. Full attention on the road. Guaranteed." -Jack Baruth