Virginia Raegan

You may have heard that carrying a balance on your credit card each month is a positive credit score factor. Is this true? Or is it better to pay off your credit card in full each month? Looking at a credit card debt calculator might show you that you will pay more in the long run if you continue leaving a balance. Here is what you need to understand about keeping a balance on your credit card and whether it can actually be a positive credit score factor. The Myth of Increasing Your Credit Score The myth is that leaving a balance on your credit card shows you are trustworthy with your money. However, that is not the kind of behavior the credit bureaus value. In fact, keeping a balance is not a factor in your credit score at all. Lenders really want to see that you can run up a balance and then pay it off. Your credit utilization ratio, or how much of your credit limit you’ve used, is a factor. Your ability to make on-time payments is a significant positive factor as well. However, t...

Are you feeling buried under credit card debt? Certain red flags could signal you need to cut back on spending or seek professional help with credit card debt. Here are some signs that it might be time to use a credit card debt calculator and seek assistance.  Red Flag 1: You Haven’t Used a Credit Card Debt Calculator The first red flag is maintaining a high balance on your card. Alternatively, you may have multiple cards open, but you’re beginning to worry about the overall balance. You can use a credit card debt calculator to see how much you owe in total. If you make consistent payments but your balance is climbing higher, you likely need help. Red Flag 2: Interest Is Adding Up Too Quickly Interest can compound on itself. For example, you might add more than $100 monthly in interest but only make the minimum payment. In this scenario, it might take you longer to pay off your credit card debt and could cost you more money. You can use a credit card interest calculator to s...