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Keep balance, or pay off each month?


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I received a new credit card and looking to continue to improve my credit scores. Is there a better strategy with credit cards as they relate to credit scores - i.e. keeping a small balance and paying monthly payments on time, or to better to use it as a charge card, and pay off in full each month?


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Find your statment closing date and make sure the bill is paid to get you below 25% just before the statement closes. Then after the scores are pulled just make a payment for the remainder or the current balance due to avoid finance charges. The idea is to use it as an interest free loan , but game the system to make utilization look good. As long as you post before the closing date , you're free to start charging again in this example on the 9th. If you just pay it off in full over the month they're gonna have what ever amount you have charged up and posted on the statement closing date as what will be reported

( Pulled from my last statement )

Account Summary Statement Closing Date: January 08, 2007

Account Number xxxxxxxxx

Payment Due Date January 28, 2007

Minimum Payment Due $6.00

Credit Line $2,000

Credit Available $1,735.34

Cash Credit Line $400

Cash Credit Available $400

Previous Balance $506.44

Payments and Credits - $1,213.33

Purchases + $971.55

Cash Advances + $0.00

Balance Transfers/Checks + $0.00

Service Charges + $0.00

Finance Charges + $0.00

Current Balance = $264.66

( Pulled from Transunion 3 in 1 credit reports)

BRCLYSBANKDE More about this account >>

Account No.: TRU**** EXP**** EQU****

Condition: Open Open Open

Balance: $264 $264 $264

Type: Credit Card Credit Card Credit Card

Pay Status: Current Current Current

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