Common sense would tell us that paying our credit card down to zero each month will boost our score but that may not be the case.
This is certainly a great habit to get into but when it comes to how this will impact your credit score, what it important is what the lender reports which is usually the balance on your monthly statement in relation to your credit limit. This is often referred to as your “utilization” and accounts for 30% of your credit score.
If at all possible you want to keep this below 25%. For example, if you have a $1,000 credit limit you want to make sure that the balance on your monthly statement does not exceed $250.00.
Pay attention to what is reported on your statement and if it is higher than what you would like consider making additional payments prior to your lenders billing cycle.