A guy at the bank told me something about credit cards that actually made sense

I was at the Wells Fargo on Main Street last Friday trying to figure out why my score dropped 12 points. The banker, this older guy named Ray, looked at my report and pointed out one card was at 89% of its limit. He said, 'Look, even if you pay it off every month, that high balance gets reported and hurts you. Try paying it down before the statement closes, not after.' I'd always just paid the bill when it came. Has anyone else tried this trick of paying early to keep the reported balance low? Did it help your score?

3 comments

3 Comments

nancy_garcia631mo ago

That's interesting, but honestly I just pay the full balance when the bill comes. My score's been fine doing it that way for years.

xena_allen1mo ago

Wait, you've never carried a balance? @nancy_garcia63 that's wild. My score tanked when I did that one time.

the_lucas22d ago

Carrying a small balance actually shows you can handle debt responsibly. Credit scores are built on proving you borrow money and pay it back, not avoiding it completely. A zero balance all the time can make you look inactive to the scoring system. My score went up when I let a tiny amount report once in a while. It seems backwards but the whole system is built around lending.