Expert Q&A
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Email to a FriendIf I have the ability to pay off ALL of my credit card debt this week, in the eyes of FICO, is it better to pay it all off, or leave a small balance?
Related Topics: Debt and Credit
Related Tags: Debt, Credit Cards, Credit Report, Credit Score, Payments
As many other professional have stated it is best to pay off any debts, however have a few credit cards that does have a small balance.
Do not worship at the alter of the FICO. That score is not an indicator of building wealth, being financially smart, or winning at money. I have never met a millionaire who made his millions by “properly building his credit score.” Get out of debt and start building wealth.
In the eyes of FICO it is better to leave a balance and continue to pay on it for the rest of your life. All FICO is, is a score of how well you can borrow money. Why would you want to borrow money from someone and pay to do that when you can pay off all your debt and get paid to save money to buy what you need?
As you can tell, I believe in being debt free and paying cash. A debit card and drivers license are the only plastic in my wallet.
