It's a good idea to pay off your credit card balance in full whenever you're able. Carrying a monthly credit card balance can cost you in interest and increase your credit utilization rate, which is one factor used to calculate your credit scores.

You should always pay off your credit card in full every single month. There is a persistent, high-fidelity myth that "carrying a small balance" improves your credit score by showing you use the card, but this is incorrect. In reality, carrying a balance does not help your score and instead costs you unnecessary money in interest charges. To maximize your credit score, you want a low Credit Utilization Ratio (the amount of credit you use compared to your limit). This is calculated based on the balance reported by your bank, which is usually the amount on your monthly statement, not what you carry over to the next month. By paying in full before the due date, you prove you are a responsible borrower while avoiding the high-interest rates (often over 20%) that can trap you in debt. If you want to show "activity," simply use the card for a small purchase and let the statement close with that balance, then pay it off immediately. Leaving a balance is purely a gift to the bank’s profits and offers zero benefit to your financial health or credit standing in 2026.