Each week, we’re clearing up common money myths to help you feel more confident with your finances.
Myth: Paying the minimum keeps my credit score high 
Truth: Paying the minimum can actually hurt your score 
Here’s the deal:
When you carry a lot of credit card debt and only pay a small part of it, lenders see that as risky. Even if you’re always on time, your credit score might not improve much.
Pro Tip: If you’re able to, paying off your full credit card balance each month can really help you out long-term. We know that’s not always possible, life happens, and bills can pile up but even working toward this goal over time can make a big difference.
Here’s why it helps:
-
No interest charges: Paying in full means you avoid paying extra money in interest.
-
Lighter financial load: Staying on top of your balance helps reduce stress and makes space for other goals, like saving for something big or building an emergency fund.
-
Credit score boost: The less of your credit limit you use, the better it is for your credit score. Keeping balances low shows you’re managing credit well and lenders love to see that.
You can also check out our article on the affect minimum balance payments can have here!
Check out this helpful article from Transunion on how “Paying the Balance vs. Paying the Minimum on a Credit Card”: 
Read more here
Ever believed a credit myth yourself? You’re definitely not alone! Share it below and let’s figure this out together. 