Quote:
Originally posted by gonadman
Absolutely. Lenders will be less apt to lend you money if you have a large amount of unused credit. On the other hand, by paying in timely installed payments rather than paying off the entire balance all the time, you will improve your credit score.
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gonadman-
That information is actually incorrect. The Credit Card Company only reports it's information (aka balances) once per month. As far as the credit bureau knows, you are just carrying a balance instead of paying it off each month. (Unless, of course, on the off chance that they report right after you have paid it off)
Keep in mind that the Credit Reporting Agency keeps track of your
highest balance that you have had on that particular card, so even if you are paying it off each month, if you are maxing it out each month it will not fare well for you in the long run. I would recommend staying below 60% of your limit.
However, gonadman, you were correct on the timely part. Paying your bills on time is the most important factor in your credit score, although there are a variety of other factors involved.
Well, hope this helped!