How to Carry a Credit Card Balance and Improve Your Credit Rating

Many people believe that if they carry a credit card balance their credit score will be negatively affected automatically. While large credit card balances can impact you negatively, it doesn't have to. In fact, sometimes it can actually help your score. If you do things correctly, carrying a credit card balance can help you build credit. Here are some details about carrying a credit card balance and improving your credit score. 

Boosts Credibility

Carrying a balance on your credit card can help you in your journey to build credit. You have to have credit in order to get credit. Therefore, a credit card can be a small stepping stone onto bigger and better things like a mortgage loan. You have to make a few purchases with your credit card and show the credit card companies that you can handle it. If you put money on your card and refuse to let the interest get the best of you, it shows that you know how to handle money. This will do much more good for your credit score than many other quick fixes that you could try.


Putting a balance on your credit card does not mean that you should max the card out. You don't ever want to stay at your credit limit for very long if you want to help your credit. If possible, try to keep your balance at about 30% of your credit limit or less. If you keep your limit at a reasonable level, it will prove to the credit bureaus that you can resist temptation. Most of the time, if someone has a $5,000 credit limit with their card, they end up buying things until they get to $5,000. If you show that you can only spend what you need to spend, it will prove that you have willpower.

Timely Payments

When you have a balance on your card, you have to remember to make timely payments on the account. Every month, the credit card company will send you a statement with your balance and the minimum payment required. You need to remember to make the payment in plenty of time before the due date. Send in your payment a couple weeks before the deadline to ensure it arrives on time.

Make every attempt to pay the minimum payment each and every month to ensure the credit card company will the report the account as current. If you pay less than the minimum payment or skip a payment, they can report it to the credit bureaus and your score will go down as a result. 

Your payment history makes up over a third of your overall credit score. Therefore, if you want it to improve, you need to make sure that you are paying your bills on time every month. 

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