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. Read on to learn the facts about how your balance affects your credit score.
How Your Credit Card Balance Affects Your Credit Score
There are five things that determine your credit score. These credit score factors break down as follows:
Payment history (35%)
