Don't Pay off Your Credit Cards

Don't pay off your credit card debt. That sounds a little crazy, I know, but let me explain.

I'm certainly not suggesting you don't pay off any debt. By all means, keep making those monthly payments. Pay at least the minimum amount and more if you can. But as you find your debt approaching the zero balance mark, congratulate yourself and stop.

If you still are required to make monthly minimum payments, do it. Not doing so will ding your credit report. But, interestingly enough, so will paying off all your debt. That's right. It's better to have a low balance than no balance.

Keeping a low balance on your credit card(s) shows the credit bureaus that you can handle your debt and you keep the credit companies happy. Paying your cards off completely alerts the credit agencies that you are panicked about your debt and can't handle it so you need to eliminate it completely. While it isn't a big ding in your credit score, it does affect it.

And then don't use your cards, unless of course, it's an emergency. Just charge something small every once in a while and pay that balance off with your next statement. It shows you can responsibly handle your credit and can slowly boost your credit score.

About the Author:
Dylan White is not a certified credit counselor. He is a "debt survivor" having been deep in debt and found his way out. He runs the credit card informational site Credit Card Corner and updates it regularly with new links and information.