This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.
Separate myth from fact now. Here’s what really affects your credit score. garagestock / Shutterstock.com
Editor’s Note: This story originally appeared on The Penny Hoarder. You probably know that paying down debt is good for your credit score. But there’s a persistent myth about credit card balances and credit scores. Some people say that carrying a small balance from month to month somehow helps your credit score. The idea that carrying a balance helps your credit score is totally false.
More from my site
6 Advantages and 4 Disadvantages of Online Banking
This Huge Mistake Could Cost You a Credit Card Sign-Up Bonus
7 Things That Never Expire – and How to Store Them
4 Tips to Maximize Your Savings With Itemized Deductions
How to Boost Your Odds of a Successful Retirement to 97%
6 Facts Most People Get Wrong About Social Security
