I've heard this before but still not sure what it exactly means. Are you saying if I spend $10,000 each month my report will somehow still show me carrying a balance of $10,000 regardless of the month's closing balance showing $0.00 due to the early payments? Not sure how that would work. It seems like a "balance", by definition, would be the balance of your charges that are not paid during that month and carry over to the next month and is subject to interest. None of my charges are ever carried over and therefore never subject to interest and therefore are never technically a "balance". But you're saying the credit report makes no distinction between paying off a $10,000 charge each month and making a small payment every month on a $10,000 balance? You would think that would be a pretty critical financial distinction they would want to make.