Ramit Sethi tears into the myth that you need to carry a credit card balance to build credit. The truth: pay it off in full every month. You'll improve your score and stop throwing money away on interest.
By the way, one cautionary tale. There's this weird thing people do. They will stay using credit cards while they are in credit card debt. And I'll ask them, why the hell do you keep racking up debt? And they go, well, I need my credit score to be good. What the fuck? We do not continue racking up credit card debt just to keep our credit score high. Also, who told you that you need to carry credit card debt in order to have a good credit score? No, you need to pay off your credit card debt, as I talked about just a second ago. And you need to make sure that you are paying your balance in full once your credit card debt is paid off.
