Kill two birds with one stone
Paying off that balance is often the fastest way to improve your credit score.
As an adult, there is another important number you need to think about that summarizes your history with credit and borrowing:If you use credit cards regularly, the best strategy is to pay off your entire balance in full each month by the due date. If you carry a balance, it can drag down your credit score while paying interest for the privilege. Let's take a look at how credit card balances impact your credit score and the best method to get the best credit score possible.
The balance portion of your credit score is calculated across all open credit accounts. For example, if you have four credit cards with a $2,500 limit each, your total limit is $10,000. Your credit score is based on the total balances of those accounts divided by your total limit. Many credit experts say that you should stay below 20%-30% of your total limit to have the best credit score, but that may be a bit misleading. The best balance you can have for your credit score is $0.
don't stop at your credit score. Your bank account wins in several ways from paying off your cards before the monthly due date. The biggest benefit: You don't have to pay any interest.
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