So the question is, when is it a good idea to pay off your credit card balance. Some people think that paying off your balance will have a negative impact on your overall credit score. Others feel it will have no impact at all. Well, here’s the straight scoop. Paying off your credit card balance (when you can afford to do so) is always a good idea. Here’s why.
In the first place, whatever kind of payment you make will be reported to the credit bureaus by your credit card company. And paying your balance in full always looks better than making a partial payment. This is just one of those times when the logical answer is also the right answer.
The second reason why it’s a good idea is that by paying in full you avoid any kind of finance charges (and also any sneaky penalty fees banks like to add to your bill). That means you will keep more of your own money and that’s always good for you.
The confusion around this whole question stems from the idea that carrying a balance is somehow good for your credit. It’s not. That’s just another one of those urban myths (maybe started by the credit card companies themselves). So pay off your credit card balance every chance you get and stay debt free.
Did you know that switching from credit cards to prepaid debit cards can save you money?. Do yourself a favor and find out how easy it is to buy prepaid debit cards and use them to lift yourself out of debt.
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