Originally Posted by
MDtR-Chicago
I did get one thing of value from the article:
First time I've ever seen them admit that in public - usually, when a Fair Isaac/myfico.com/whatever person is quoted, they say something like "lower is better... less than 50% is good..."
Otherwise, there isn't much solid advice. If I'm reading between the lines correctly, it sounds like he's saying he carries a small balance here or there, to get the rewards. And he doesn't necessarily pre-plan his spending, just looks back over his statements to figure out where the money went.
BZZT. He's almost certainly paying more in interest and overspending than he's earning.
Unimpressed.
Don't need to actually cary a balance. You need to let you cycle close with some outstaning balance. This is a good advice to people who pay off the bill before cycle closes and it always show sup as ZERO dollars -- that is not as good as say you billl closes and you have a $1,000 bill, and then you pay it off within 21 days.
Carrying a balance only helps credit card companies with 20% annual fee, but closing each cycle with a balance helps your utilization score, it is a fine distinction that is lost on a lot of people. IMHO
Best,
PedroNY