Does Carrying a Credit Card Balance Help?

There’s a common myth out there that keeping a balance on your credit card helps your credit history. Possible’s Chief Credit Officer, Ellen Falbo, sets the record straight.

If you’re able to pay off your credit card in full, Ellen says you absolutely should. Carrying a balance doesn’t improve your credit history—instead, it just racks up interest and makes your financial life more expensive than it needs to be.

The bottom line? Don’t pay more than you have to. Pay off your card when you can and avoid the myth that holding debt helps.

More in this series

The most common reason credit scores drop

How to plan for your future and get out of debt in midlife

Why Your Credit Score Varies by Bureau

How Many Trade Lines Do You Actually Need?

Why Credit Drops Fast But Builds Slowly

Why Paying Off a Loan Can Drop Your Credit Score

Financial Literacy Class: Credit scores, budgets, and how to use both

What Credit Score Do You Need to Buy a Car?

The Best Credit Habit You Can Build

How to Start Saving for Retirement

Credit Tips for College Students

How do you start a budget?

When’s the best time to pay your credit card bill?

Counter Offers Explained: We’ll Get You The Most We Can

Why Possible Keeps Loan Amounts Manageable

How Possible Decides Who Qualifies for a Loan

How to Fix Your Credit

What You Can Actually Dispute on Your Credit Report

How to Rebuild Your Credit After a Score Drop

How to Spot Credit Repair Scams

Can You Get a Loan or Credit Card With Bad Credit?

Overwhelmed by Debt? Here Are Your Options

Debt Consolidation vs. Bankruptcy

Are Debt Consolidation Loans Worth It?

Can Sold Debt Still Be Collected?

How to Use Credit Cards the Right Way

What to Know About Debt Relief Companies

How to Save for Holiday Spending Without Going Into Debt

Smart Strategies for Paying Down Debt on a Budget

Simple Ways to Build Credit Without Taking on Debt

Why Reading the Fine Print Could Save You Big Money

Why You Are Bigger Than Your Credit Score

What to Know About Starting Your Credit Journey

Three Smart Moves to Start Building Your Credit History

Why Not Everyone Has a Credit Score—and How to Get One

What to Do When You Can’t Afford Student Loans

Credit Cards Aren’t a Substitute for a Savings Account

Paying Interest to Build Credit History? Here’s a Better Way

Can You Borrow a Down Payment? Reasons Why That’s a No

Should You Skip Your 401(k) Contributions?

You Are Not Your Credit Score

4 Easy Ways to Check In on Your Money Right Now

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