Well, it's not always.
If you have a lot of available credit, you could get yourself into debt. So, if you try to buy a car they may worry that you will max those cards and not be able to make your car payment (or whatever).
Maintaining a card or two with zero balance is fine. Having 10 is a problem.
Okay, this one is very simple.
Your credit score reflects your ability to handle debt. If you pay everything off and do not use your credit, that is hypothetically a blank spot in your usage history.
Your credit score is best when you have very small amounts of installment debt, a mortgage, and have one to three lines of revolving credit, most of which have a zero balance...the last ONE should carry a balance of around 10%. That shows you can handle a mix of credit and don't need it.
Your friend is wrong. It works in your favor to pay it off - However, you do need to use it regularly and pay it off. Not just keep it at a zero balance.
When your credit is checked, they are looking for a solid payment history (among other things like available credit) - If you don't use the card, you don't have a payment history to go by.
Use it at least once a month and pay it off every month and you'll be fine.
Your friend is totally wrong.
I have 3 credit cards that I use every month for just about everything I buy and always pay them off in full before the due dates.
In the last couple of years I have raised my score over 150-points, never paid a penny in interest or fee's and made several hundred dollars in cash back rewards.
And if you think about it there will always be a small balance to be reported due the the difference between the billing and the due dates.
Make the credit card companies work and pay you not the other way around.
Use their money for free and get paid for it at the same time.
Naaaah.....Not so bad. ONE of the factors of a credit report is your debt to credit ratio. If your credit exceeds your debt by miles then you in there like grandma's foot in collard greens.
The banks are the ones who frown upon this, as you are not paying any interest to them. What you do is pay an expense on your credit card like lights and water or something. When you get paid, pay off the total balance in full. This way you will establishing a good credit history as it will documented that you pay your bills on time.
P.S.
Eat lots of fiber
That is completely false. It is very good for your credit score to have a zero balance. It is also a smart financial move on your part to avoid paying interest.
The only time that will come into play is if the bank decides to cut the less profitable accounts. They will not be making any money off of you so you may end up on the cut list. Doesn't matter though. If you keep your balance zero and your credit good, you always have other options.
Your friend is 100% wrong.
The best way to get top 800+ scores is to charge a little something each month and pay in full when the bill comes in the mail.
I am proof this works.
You never pay a dime in interest and get top scores.
Carrying balances can actually ruin your credit - in some cases it can destroy lives.
No need for carrying balances.
There is a myth out there that carrying balances is good.
I think it was started by ladies that like to watch QVC.
/
I am in the same position as you
its good for you, and me
but bad for the banks
because we clear any balance, the bank makes no money from us
so, really we are not "good" customers, as we never borrow any money to pay interest on, which is how they make their money
It isn't. Stop listening to this boyfriend. He's obviously no expert in financial matters.
Carrying a balance on your credit card is only good for the credit card company, because they get to charge you lots of interest.
It's not that it's bad to have it paid off (versus carrying a balance)...it's just viewed as potential for additional debt.
Simple answer: your friend is wrong.
Could be that your friend is jealous?