I buy things on credit card, and pay the full amount off, but my credit score is going down instead of up?
I have nothing else my name expect this credit card, and student loans that are not due yet because I am still in college.
I buy things on credit card, and pay the full amount off, but my credit score is going down instead of up?
I have nothing else my name expect this credit card, and student loans that are not due yet because I am still in college.
Your credit score goes up if you have a balance.
They want to see if you'll be profitable to have as a customer, which paying off credit and not having interest means you arent
This is what I believed for a long time. Then I was in a relationship with someone with excellent credit and who prided themselves on knowing how all this shit worked. They thoroughly convinced me that this idea of "don't pay it off every month because they want to profit" was just a myth. Showed me some seemingly reputable sources confirming this, saying that paying your credit card(s) off in full every single month was the best way to increase your credit score. My credit did go up a little bit in this time. But then that person proceeded to take advantage of me, financially and in other ways. Now I don't know what to believe. :stalin-stressed:
That person's advice was 100% correct in this case. Your score does not go up if you have a balance, it goes down . Pay in full every month and gradually it will go up, even if there's bumps on the way.
This myth started because if you have a credit card you literally never use, they might close the account and having fewer accounts open can hurt your credit score. That's not at all the same as paying the full balance every month.