Credit Myth 1: Carry a Balance?

Responsible money management is an art form. With this post we explore one of the fundamental principles we champion — the art of not carrying a balance on your credit card.

Credit Myth:
There’s a common misconception that you need to carry a credit card balance on your credit card in order to improve your credit score. The advice normally comes with tips to keep your credit card utilization under 30% of your available credit limit.

Fact:
In reality, the best way to maintain a healthy credit score is to use only what you can afford to payoff each month and pay the entire amount due on your credit cards each month. Otherwise, you’ll end up paying interest to your credit card company.

Not Carrying A Balance: The New Flex
At Neon Money Club, we believe not carrying a credit card balance from month-to-month should be celebrated. That’s why we made The Cream Card™. It’s a charge card that gives you the same ability to purchase items on credit throughout the month, but instead of carrying a balance and charging interest - it requires you to pay the full amount you’ve used on each due date. We want our members to avoid paying interest, so that they can keep more of their money to themselves.