As someone who worked in banking for over 5 years, I’m pretty sure this was a “tip” once put out there by the banking industry and it spread like wildfire. 🤦‍♀️ 👉 The ONLY people who benefit from you paying interest on a credit are the banks themselves! Here is what will *actually* help your credit score WITHOUT having to pay unnecessary interest. 1️⃣ 𝗢𝗻- 𝘁𝗶𝗺𝗲 𝗽𝗮𝘆𝗺𝗲𝗻𝘁 𝗵𝗶𝘀𝘁𝗼𝗿𝘆 (𝟯𝟱%): always, I repeat, ALWAYS, pay *at least* your minimum payment. This is the quickest way to drop your credit score and the longest to make up for. 2️⃣ 𝗖𝗿𝗲𝗱𝗶𝘁 𝗨𝘁𝗶𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻 (𝟯𝟬%): What percentage of your available credit are you using? Aim to keep it under 30%, ideally under 10%! Keep in mind that this is not the highest balance you’ve had over the month, it is what your balance is when your statement cycle closes. 3️⃣ 𝗟𝗲𝗻𝗴𝘁𝗵 𝗼𝗳 𝗖𝗿𝗲𝗱𝗶𝘁 𝗛𝗶𝘀𝘁𝗼𝗿𝘆 (𝟭𝟱%): How long you’ve had credit. This is why closing accounts, especially your long-standing ones, might not be the best idea. Pay them off and hide them somewhere, don’t close them unless absolutely necessary. 4️⃣ 𝗡𝗲𝘄 𝗖𝗿𝗲𝗱𝗶𝘁 𝗜𝗻𝗾𝘂𝗶𝗿𝗶𝗲𝘀 (𝟭𝟬%): Everytime you submit an application for a credit card or loan, your credit score takes a hit. Most of the time it is a temporary drop, it usually goes up after a couple of months. For reference, I have over 15 credit cards and still have an 800+ credit score. 5️⃣𝗠𝗶𝘅 𝗼𝗳 𝗖𝗿𝗲𝗱𝗶𝘁 (𝟭𝟬%): Having different types of credit, ie: auto loan, mortgage, and credit cards will yield a slightly higher credit score. Although I know that paying off my student loans might result in a slightly lower credit score when they are paid off, I’m still committed to paying them off and dealing with a credit score drop. Don’t let this category dictate your debt payoff journey! #creditcardinterest #creditcarddebt #moneytips #moneywhistlr #moneymindset #latinaswhobudget #fyp