Does that guarantee higher credit scores?
This is a common misconception and if your credit card balance is high on the day of the month that your credit card company reports to the credit bureaus that will be the amount reported. The fact that the balance is paid off with each month’s billing statement and returned to “zero” might not be reflected on your credit report. Many self-employed or small business people, or those who make many business-or profession-related purchases on their credit cards and then pay of the balances each month, fit this profile. Say for instance, that by the end of the month, you make $7,000 worth of purchase using a credit card with a credit limit of $8,000. In the middle of the month, at the time of the due date, you pay off the entire balance that appeared on your last statement. But from a credit reporting perspective, you aren’t paying off the entire balance: by the time your payment arrives at the credit card company, your true balance has changed due to the incoming charges. While you may pa
