Did you know it's bad to pay off your credit cards completely?

Yes I know you would think that paying off your credit cards is a good thing and while it's better than not paying them at all it will still hurt your credit score. It's always better to maintain around 15 - 25% credit card utilization which means if your credit limit was $1000 you wouldn't want to use up more than $250 of that because otherwise you would be using an unhealthy amount of your credit and this in turn would negatively affect your credit score.



This is definitely not something that we want to do because we are looking to get a higher credit score and most of us are looking to increase our credit score fast. This isn't as easy as it sounds but making all your payments on time as well as keeping a good credit card utilization are the keys to managing your credit.

This is not as hard as it may sound as long as you keep an eye on your spending and we always recommend having an online account with your credit card. This way you can monitor all activity and maintain a balance that works well with your current credit card limitations.