How Does Paying Off a Credit Card in Full, Each Month Affect a Credit Rating?

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Paying off a credit card in full each month is a great strategy that an individual can use to keep their credit score high. Avoid taking on charges that can't be paid over time with help from a registered financial consultant in this free video on credit and personal finance.

Part of the Video Series: Credit & Personal Finance
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Video Transcript

This is financial adviser Patrick Munro talking about how paying a credit card off in full each month will affect your credit. This is one of the best strategies that an individual can use to keep their credit score at a high basis. Make sure that you use your credit card in a timely fashion and that you are mindful that you do not take on charges that you cannot pay over time. It is great that you would pay off your credit card balances as they come in every month and bring your card balance back down to 0. That really trumpets to the credit card reporting agencies that you are a responsible debtor and that you should therefore be given a higher credit score going forward. Sometimes people will not be able to do that however, they should make a payment that is more than the minimum payment to send a message to the credit card company that you are managing your credit in a positive way. However, paying your credit card balance off on a monthly basis in full every month is the ultimate way to make sure that you have the highest credit score available. This is financial adviser, Patrick Munro.

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