Is Carrying a Balance on your Credit Card Good for Your Credit Score?
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With credit cards, you can pay a Minimum Amount Due (MAD) and carry forward the balance.
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While paying the MAD can free you from a huge bill, it can hurt your credit score.
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Your credit score gets affected when you carry an unpaid balance on your credit cards. Hence, it is better to avoid such balances and pay bills on time.
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Besides damaging the credit score, a balance on the card also entails additional interest charges.
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Moreover, you lose the interest-free credit period in the next billing cycle. Each spend is added to the revolving balance and interest is charged on the total.
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Since carrying a balance on credit cards is bad for your credit score and your pocket, always pay your credit card bills in full.
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IDFC FIRST Bank offers a range of credit cards with useful benefits and rewards.