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Had a neighbor in Phoenix tell me I was stupid for paying off my credit card on time every month
He said carrying a small balance builds credit faster, then showed me his 780 score with $4k in revolving debt while I was sitting at 740 with zero - which strategy actually works better long term without paying extra interest?
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wilson.claire2mo ago
Got dinged for high utilization instead" - see, that's the thing, your buddy probably wasn't doing it right. The trick isn't to carry a huge balance, it's to let a tiny amount report on your statement then pay it off before the due date. Like $20 on a $1000 limit, that's 2% utilization and shows you're using credit responsibly. Your neighbor at 780 with $4k in debt is playing a different game entirely, he's probably got a long history and thick file where that utilization doesn't hurt as much. For someone starting out or rebuilding, showing a little usage each month can actually get you score bumps faster because it proves you can handle credit without maxing out. You're at 740 with zero balance which is solid don't get me wrong, but the algorithm sees that and thinks "well I guess they don't really need credit" which can slow down your growth. Long term, you'd probably end up at the same place, but if you want to speed things up, letting $50 report then paying it off is a zero cost way to try it and see if it works for you.
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