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Chapter 4. Credit Scoring Myths > Myth 6: You Have to Pay Interest to Have a Go...

Myth 6: You Have to Pay Interest to Have a Good Credit Score

This is the exact opposite of the previous myth, and it's just as misguided.

You don't need to carry a balance on your credit cards and pay interest to have a good score. As you've read several times already, your credit reports—and thus the FICO formula—make no distinction between balances you carry month to month and balances that you pay off. Smart consumers don't carry credit card balances for any reason, and certainly not to improve their scores.


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