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All of the following are benefits to paying the full
balance on your credit card each month EXCEPT:
You won't have to pay any late fees.
Your credit score can increase.
Your credit score can decrease.
You won't have to pay interest.​

1 Answer

4 votes

Your credit score can decrease

Explanation:

The smaller the balance, the higher the credit ratings will be. When you buy tiny and pay them off instantly, your card will be kept active and your amount would be well below the credit limit.

Yet paying for your credit card bills more than the amount lets you chip the balance, which boosts your use of credit and increases your ratings, Often, it is important to pay more than just the minimum if you have to use your cards for new sales, because you do not want the debt to pile up.

Basically, you spend more in interest charges when you raise the minimum deposit than if you settle the balance quicker by charging greater prices. It is only by increasing your annual credit card payment by some amount you can save hundreds, maybe even thousands of pounds.

User Terrabythia
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