Quote:
Originally posted by NoSoup
A paid off credit card also is good, but isn't nearly as helpful as a credit card with a small balance.
Pay off as much debt as you can, especially unsecured. Keep a very, very small balance on credit cards, but pay it off each month to avoid paying intererest.
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This fascinates me, and I have heard it before, but I still don't understand how leaving a balance on a card is better than paying it off and having a zero balance. When I have applied for mortgages, or when I was out shopping for them, i would pay off major cards prior to meeting with the lender, and my credit scores seemed good. Could you explain?