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We're the Consumer Financial Protection Bureau (CFPB), a U.S. government agency that makes sure banks, lenders, and other financial companies treat you fairly.

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Will paying off my credit card balance every month improve my score?

Answer:

Not necessarily, but for many consumers, it is still a worthwhile financial practice. 

Your credit score is calculated, in part, by comparing how much credit you are using to how much credit you have available on the day the credit card company reports to the credit bureau.

So even if you pay off your card every month, you might have a high balance on the day the report is made. As a result, if the report is made just before your bill is due and you have run up a large balance, your score will go down even if you pay it off the next day.

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