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Is it bad to pay off credit cards every month (not pay the credit card company any interest)?
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Last Updated
13th of April, 2010

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Nope! It’s only bad for the credit card company, since they will make less money off of you (they still make a small amount each time you use your card, but they make this money off of businesses, not you as the consumer).

Paying off your credit cards is great for you because you get to use their money for free during your grace period, the time between when you get the bill and when your balance is due.

In fact, paying off your credit card balances on time each month is one of the best things you can do to reach and maintain high credit scores because: 1) you avoid getting buried in credit card debt; 2) you keep your revolving utilization low in this way; 3) you maintain a positive payment history (as long as the payments are on time).

Numbers two and three above are two of the five criteria on which your credit scores are based, so it's easy to see why it’s not bad for your credit scores to pay off your credit scores each month. On the contrary, it's very good for your scores!

Not sure where you stand? Check your credit reports and scores online today!





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