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It's better to pay off your credit card than to keep a balance It's best to pay a credit card balance in full because credit card companies charge interest when you don't pay your bill in full every month.
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Carrying a high balance on your credit cards has a negative impact on scores because it increases your credit utilization ratio Your credit utilization ratio or balance-to-limit ratio shows how much of your available credit you're using and is the second most important factor in your credit scores.
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