...My credit rating has been going continually down, according to my credit monitoring service. It is now only rated as "fair".
I only make credit card purchases when I have enough money in my bank account to pay the bill in whole when the bill arrives, and that is exactly what I do.
I use my cards to buy things on the Internet (usually quite small in amount), and occasionally to make large purchases such as airline tickets (twice in last two years) - for several thousand dollars.
One of my friends told me that making large purchases and always paying the balance in whole is bad - I am supposed to only make the minimum payment every month to have a good credit rating. This makes no sense to me. I would think that paying the balance as quickly as possible would be an indication of responsible financial behaviour and therefore I would be a lower credit risk with improving credit ratings.
Are there any credit card or bank employees out there who can explain this? Thanks.
2006-08-05
04:44:36
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12 answers
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asked by
Anonymous
in
Credit