My Two Cents: Credit Cards and Credit Scores

Having and using a credit card helps raise your credit score. Not paying it off and carrying a balance on a credit card helps lower your credit score + costs money

Oh, credit cards and credit scores! Having a credit card, and using it responsibly, can be a huge help towards having a good credit score. Credit scores affect more than our ability to borrow money. For example, they can affect what we pay for insurance, utility deposits and even whether or not we land a job. Credit scoring agencies look at a mix of things to calculate our overall use of credit. And credit cards can play a big role in this.

However, many people mistakenly believe that to have a high credit score they need to carry a balance on their credit cards. This is an expensive myth. Paying off the balance on or before the due date keeps the credit card account active and avoids expensive finance charges.

My Two Cents on Credit Cards and Credit Scores

Having and using a credit card helps raise your credit score. Not paying it off and carrying a balance helps lower your credit score AND costs money.