How do some people maintain a good score by not paying their bills in full?

my friend has a credit score of 790, but it used to be 800, he was like for the last year and half since I moved out I have only been paying 70%-90% of my credit card cause I have more bills to pay, but I still maintain a 790 score.

Does not paying the full amount hurt your score? And mind you he was approved for a used car loan, and a new phone bill.

11 Answers

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  • 2 weeks ago

    wether your score is 790 or 800 is irrelevant, anything over 760 is considered an A+ to lenders

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  • 3 weeks ago

    As long as you don't owe more than 40% of the credit limit on your credit card your score stays good if you pay on time. It's maxing up your line or not paying that hurts your score.

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  • Anonymous
    3 weeks ago

    As long as you pay the minimum due, there's no negative hit to your score from carrying a balance.  There's no "plus" either from paying it off in full.  IF your account balance as a % of your credit limit is too high, that can reduce your score but that's a separate issue from not paying your bill in full each month.

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  • Shay
    Lv 7
    3 weeks ago

    Because the scores aren't based on bills paid in full.

    Scores are based on - was the minimum payment paid on time - 

    And - how much of the available credit line is being used.

    You can carry a balance on your credit cards as long as the balance is never more than 30% of your total available credit line and it won't hurt your score.  Keeping the balance below 10% is even better.

    So - you don't have to pay in full as long as you aren't using more than 30% of the total credit available from all your cards.  (add up all cards and calculate 30%.  You can even max out one card as long as it is not more than 30% of the total of all cards).  

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  • Eva
    Lv 7
    3 weeks ago

    Not paying in full does not hurt your score. As long as you are making at least the minimum payment on time, you're fine. The thing that does affect it is the amount of credit in use vs. the amount of total credit available. They don't want to see a bunch of maxed out cards.

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  • 3 weeks ago

    Your credit score is a numerical representation of how likely you are to honor future credit obligations.  A big component to estimating how likely you are to honor future credit obligations is whether or not you are honoring your current credit obligations. Your obligation to your credit card issuer only requires you to make the minimum monthly payment.  

    So long as you continue to make that minimum required monthly payment, your card issuer will happily report that you are honoring your obligation to them.  They don’t care that you are not paying in full. In fact, they prefer you not to, as that allows them to charge you their ridiculously high interest.  The computer algorithm that spits out your magical three digit number doesn’t care that you are paying ridiculously high interest on your credit card, it is just happy that you are honoring your current obligations.  

    This exact situation is the best example of how what is good for your credit score and what is good for your personal financial situation do not always align, but that’s a separate conversation.  

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  • DON W
    Lv 7
    3 weeks ago

    As long as you make the minimum payment, the bank reports "OK" to the three credit bureaus, and your credit score climbs, provided you are not maxing out your cards.  

    Is that a good idea?  Nope.  You are paying lots and lots of interest which you can avoid by paying in full.

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  • 3 weeks ago

    maybe you should ask your friend how he did it

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  • A.J.
    Lv 7
    3 weeks ago

    Credit scores are based on always paying at least the minimum before the due date, having many types of credit on file in history, a long history, keeping low balances.

    https://www.myfico.com/credit-education/whats-in-y...

    Credit scores vary typically by month up to 10 or 20 points

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  • Anonymous
    3 weeks ago

    Does not paying the full amount hurt your score?  iT DOES NOT. IDIOT. 

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