Obama: Health Care Bill a Victory for Americans

Have to disagree here Chi, below is right from FICO. You can see the whole document at
www.[B]myfico.com[/B]/Downloads/Files/myFICO_UYFS_Booklet.pdf

?Pay off debt rather
than moving it around.
The most effective way to
improve your FICO®score in
this area is by paying down
your revolving creditcredit has already been used, this can indicate
that a person is overextended, and is more likely
to make some payments late or not at all. Part of
the science of scoring is determining how much
is too much for a given credit profile. Your FICO®

 

The key part there is "rather than move it around."

If you have a credit card, and you never leave a balance on it, instead paying it in full every single month, it will hurt your credit.

 

I have actually spoken with FICO and asked that very question, they said leaving a balance is a myth. Of course often times one hand does not know what the other is doing there, I truly believe that they like to keep disinformation out there in the public so nobody knows how they truly operate. From my own experience, we never leave balances on our cards and our scores have never had a negative impact.

 

The two people I was speaking of have no balance on their cards at the end of the month.
They pay the bill each month and they have the 800+ credit scores.

Of course the bank wants you to pay the minimum because they get more interest from you.

It is better to pay off your debt as fast as you can.
It is better to pay the minimum than not pay anything at all.
You are going into debt if all you pay is the minimum amount and the banks are now required to show you on their statements just how much money you will be paying the bank if you pay only the minimum amount each month and continue to use the card before the balance is paid in full.

Debt for our parents and grandparents were the house note and the car note.
They paid interest through coupon books.

Lay-aways were the deferred payment for the older generation, but that was for 90 days only and you didn't take the merchandise from the store until you paid the full amount.