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He says it's better to have two or three accounts with smaller balances than one card with a high balance.
But beware those that could actually cost more than a standard account unless you maintain a high balance.
And people who run up a high balance on a single card may be penalized — even if they pay that balance off in full each month, Schulz says.
With a high balance or a high student loan rate, interest charges can be painful.
You could also be hurting your credit score by maintaining a high balance.
This strategy can work well for those who have good credit but a high balance.
Similar(40)
Even if you pay your balance, a high balance-to-limit ratio is not ideal.
A low balance-to-limit ratio makes for better credit score than a high balance-to-limit ratio.
A higher balance generally makes me a more profitable customer for the bank.
In its study a third picked the card with the lowest APR, even though it had a higher balance transfer fee.
Mr. Brown would not say how much cash was being kept at hand, but said "it's a higher balance than one would expect to see".
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CEO of Professional Science Editing for Scientists @ prosciediting.com