Is it true that you should carry some balances on your credit cards to increase your fico score?

If you pay the total (not minimum) amount due each time..will your credit score increase or not? I heard someone say that it's good to have a balance. Is that true? Thanks!

Public Comments

1. The absolute best thing to do with credit cards is to pay the exact balance owing each and every month. This will assist you in building good credit ~ using the cards and paying them in full each month.
2. Don't pay the total EVERY time. Let some ride. They want to see that you can owe money for a period of time and pay it back. If they see you pay it back completely each month, then you're not really borrowing, you're just trying to show some credit.
3. Leave some on, than pay it in full, than add a little again, than pay it in full etc. Let the balance ride for about 2-3 months min. What they want to see is that you are paying your bills on time and are responsible when you do have some debt.
4. Pay it in full. It is an urban legend that carrying balances and making small payments increases your score. Credit card companies do not report how much your payment is. Only if it was on time or not. Save the interest and stay out of debt. Only charge what you can afford to pay in full every month.
5. There was a report on the news (tv) was where the same question was answered and they had said keep about 10% of debt of the card limit would help increase your credit score.Along with paying your bills on time.
6. I agree with poster #1, and bdancer222. Whether you carry a balance doesn't increase your score, it's how and when you pay. Anytime you overpay the minimum payment or pay it in full, it helps your score, not to mention that it saves you a ton in interest, I should know, I work for a credit card company.
7. The scoring system is a little diffrent with all three credit companys. The system of the score Fair Issacs does raise and lower based on your credit card balance . If your card balance is close to the limit your score will drop alot as it seems your having a problem living and or spending more than you should. If you pay the total amount due each time if really does not show the credit scoring system your ability to make timley and regular payments because your paying the balance off and the score only gets information every 30 days it does not reflect your consistant payment. Leaving around a 70/30 balance is supposed to be best,30% balance and 70% open. You can read starting here http://www.myfico.com .Im not 100% sure as no one is except the inventors of the score. The continued changes are constantly being made making it always ahead of most.