Making Minimum Only Payment on Large Credit Card Balances Hurts Credit Score

There are several misnomers as far as the usage of credit and its effect on a credit score is concerned.  One notion that goes around is that in order to increase the credit score you should make a large per se is on your credit card and then keep making payments that are only a little larger than the minimum.  Repeating this process over and over again will enhance your credit score.  This is not true.

Any time that you charge a large amounts to your credit card or utilise the credit close to the maximum limit you stand to damage your credit scores.  The credit scoring model views high balances close to the limit of the credit card as a high-risk.  This is because if due to some unfortunate reason you are unable to make the payment in the future the lender stands to lose more money.

The way to improve your credit score by using a credit card is to charge it with nominal balances and to pay on the balance in full every month.  In case you to run your card up to its limit every month you can make more than one and on your credit card.  If you charge your credit card highly you can make the payment within a few days of the charge or every week.  This will keep the balances on the credit card low at all points of time.

Low balances on a credit card signify that you use your credit carefully and along with along history of timely payments, your credit score will benefit.
Try and avoid using quick fixes to increase credit score as there are none.