how to improve payment history.....

[tradinglife]

Have 2 credit cards with o balance, just wondering if I am better to charge a small amount each month to so as to show a pays as agreed history each month? If I never use it, will it show a good payment history. I have heard it's better to show a small balance versus o balance as far as credit score goes. Also if you paid an installment loan such as a car ahead several months does that increase your months of on time payments to inprove your score? Or do credit bureas go on calendar months versus number of months paid on time? Any ideas?

[justbroke]

It is better to carry a balance amongst several types of credit. That includes revolving (credit cards), installment (cars, long term loans), and mortgage debt. For credit cards or other revolving debt, it is best to revolve around 10% (no more than 30%) of the credit limit. It shows that you can make payments on time. If you don't carry a balance, it's hard to gauge your ability to repay. It also shows that you have a reserve of $XXX of credit that you could suddenly abuse... I mean use.

Paying installments ahead of time does not improve the score since the creditor only reports monthly. Installment loans should be kept to a minimum. Once you get over 3 installment loans with a balance, it affects your score more (could be all cars, or a car and some non-revolving furniture accounts).

Payment history is the #1 factor for the score. Just pay on time and maintain a small balance.

[TXskyblue]

To clarify, do not actually carry a balance. Make sure to pay the bill when it comes so you don't pay any interest. It will still report the balance.

As justbroke mentions, be careful of utilization. You never want to go > 50% utilization. 1-9% is ideal.