40 Prominent Finance Myths Debunked

24. A Credit Card Balance is Necessary for Building Credit

Just because you can’t have a credit card balance doesn’t mean you should. There is no evidence to support that carrying a credit card balance will help you build your credit. In fact, it will end up harming your credit by lowering your score.

The best way to build your credit is by using your credit card regularly. Do not go over your limit and make sure to pay your full balance every month. That way, you can avoid interest fees that build up when you carry a balance on your credit card. As we discussed before, it’s wise to make one purchase each month and pay it off by your due date to effectively build your credit.