how low should I pay down my credit card balance?

Question

to zero? $50? more?

Answer 1

Zero is the best answer. I don't know what fool gave a thumbs down to everyone who said it, but nonetheless it's true. If you want to build a good credit history and get a good credit score, you should show that you have credit, but you don't use it or pay it off every month. So any time you can reach zero is a really good thing.

As also pointed out, you'll save on finance charges, and depending on what cards you have, many of them these days charge interest based on two billing cycles. MAJOR rip-off. If you have a card like that (usually vanity cards for stores like Starbucks, Barnes & Nobles, Amazon, etc.), GET RID OF THEM. There are plenty of good cards that will let you transfer balances free and give you 0% interest for several months.


Also, when you use your credit, you should never use more 30% of your limit (unless there's a emergency, of course). This is another marker creditors look at.

Good luck!

Answer 2

To zero, The people who say use a balance to build a credit rating have to much money, or are the ones making moneys off you. I f you have a card don't close it out, you don't have to use it. Your rating is gaged more on percentages of the amount you are qualified to hold. It is better to have more than one card with low balances than one card with a high balance, BUT BEST WITHOUT A BALANCE.

Answer 3

You only pay interest on balances carried more than one billing cycle so, paying off your bill every month saves you from paying any interest. As far as I know, carrying a balance will not improve your credit score, however having a good debt to credit ratio will (thats how much you owe vs. your total available credit, so a person with $100 debt on a $5000 credit line is better off than a person with $100 debt on a $500 credit line).
The longer you have a card (especially one you pay off every month) the more the company will raise your credit line because they will
a. know you are a good risk and will most likely pay off your debt and
b. a higher credit line will tempt you to spend more, therefore more likely to carry a balance and make them money.

PS - don't fall for reason b.

Answer 4

Zero! What sort of dumb@ssed question is this?? Pay off the damn things and close the accounts.
PS -- you do NOT a credit score rating to buy a home. I purchased my home seven months ago with a mortgage co. that does manual underwriting, no credit scores. I also pay zero interest rates on my zero credit card. Now that I have money, I don't need it.

Answer 5

Zero is good. If you pay off the full balance on the day it is due, you could end up saving almost 2% of the purchase in the form of money not paid out.

Answer 6

depends on y u ask.. if you're trying to save $ pay it to zero if u can. if you're trying to build credit it's worth it to pay some interest. i've been told that it's best for your credit score to not pay it down to zero.. an unused card does nothing to help your credit. i've been told that it's best to leave it around 30% of the available balance. then use it a small amount every month and then pay it back down to about 30% again when u make your payment.

Answer 7

If you have established good credit, pay off your balances as often as possible, and save yourself the finance charges. If you're still building a credit history, make regular payments, more than the minimum required, but keep a small balance running. After a solid year or two of that, begin paying them off regularly.

Answer 8

To zero!

Always pay your bill in full each month. Otherwise, you will pay finance charges for the past due balance. PLUS, every additional item you buy with instantly be charged a finance fee. If you pay in full every month then you never pay any finance fees.

Answer 9

You don't get any credit points for keeping a balance and it will cost you interest, so just pay it all off if you can.

Answer 10

To improve your credit score you should have at least 70% paid off.