SAINT LOUIS, MO (KMOX) — Almost two-thirds of consumers believe carrying a credit card balance helps improve their credit score. But experts say that's a myth.
Matt Schulz, Chief Credit Analyst at Lending Tree, says he's not sure why people believe retaining a balance on their card helps them out. "This is basically the cockroach of credit score myths. It just will not die."
Schulz says it's better to pay off that card as soon as you can. "If you can pay it off at the end of the month on that next bill you absolutely should, because there is no benefit to your credit in carrying that balance.
In fact, he points out, if you keep a balance on your credit card, it will cost you money over time — especially if you have a high interest rate. Schulz tells KMOX another key to good credit scores is to avoid applying for too much credit, too often.
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