Is it better to leave a balance on a credit card or have it paid off every month?

slarkin
New Member

Is it better to leave a balance on a credit card (below 30% of the credit card limit) or have it paid off every month?

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Answers (1)

Answers (1)

Hi slarkin,

 

Thank you for your question. It is definitely best to pay off your balances in full each month. Paying off the balance before the due date will allow you to avoid unnecessary interest charges. One of the more common credit myths is that you need to carry over a balance from month-to-month in order to build credit. Fortunately, this is a false belief, as you can still build credit while not paying extra in interest. Since the amount you owe is the second largest factor in your credit score, paying off balances in full (and on-time) can lead to credit success. 

 

If you currently have outstanding balance(s) on your credit card(s), you can use the free USAA Debt Manager tool to develop a repayment plan. 

 

Please let us know if you have any additional questions, and enjoy the extra savings and feeling of freedom from not carrying a balance.

 

Thanks,

Mikel