“You should always carry a balance on your credit card.”
A terrible myth is floating around the internet that carrying a balance on your credit card and only paying the minimum due each month will help your credit score. You don’t need to carry a balance to have a good credit score. In this case, carrying a balance means only paying the minimum and always owing money to your credit card company. So what if you can’t pay in full? If you have charged more to your credit card than you can afford, you should at least pay the minimum due plus as much as you can afford on top of that. Not paying at all, or waiting until after the due date, will result in major damage to your credit score. One missed payment could be up to 100 points off your credit score. It’s important to note that carrying a high balance from month-to-month can hurt your score because you look irresponsible to lenders.