If you're starting out and trying to establish credit I think it's better to run a little balance but pay them before the due date. If you're trying to establish credit, don't be late by a day or you're toast. DOn't use a Sears card and be late or you'll never get a good rating. Run a little balance for a year and be done pay it off in full. Never ever ever never miss a payment on time. Keep the balance low to save you a bunch of money. If they say your total balance is $600...and minimum due is $50 or whatever.... send them $550 and run a balance of $50 for a month or so. Then pay it off and start again. They really like to see you owed and paid on time or early. They don't like to see NO balance. This is just to establish credit. Rent on time, utilities bills on time, and all that sort of stuff are a must to get yourself a good credit rating. Buy a car on time and don't be late. Pay early. Even on my last mortgage we made double principal payments every month. Saved lots of interest over the years. My house in Maryland goes to settlement Mar 31st. It's good to know that the money I didn't pay in interest will come to me at settlement.[8D] I owe $3,600 on the house. LOL They've been sending me a letter every month trying to get me to borrow $350,000 as a home equity line of credit.

I took out a small business loan for 7 yearswhen I started my business. I paid it off early. When I didthe bank business loan managertold me, "if you ever need anything come and see me. I've never had a business loan never be so much as a day late. You're the first". And that's how you build credit lines. Borrow, pay on time, sometimes run a balance on credit cards or buy a car or something on time and never be a day late. Paying cash for everything will not establish a great credit rating.

You still have to qualify by way of income and/or down payment. Balances that can't be paid instantly will lessen the amount you can borrow for say a home. It's all part of you month debt. If you owe several thousand on a car or credit card, you just lost a lot of buying power for a house,another caror some major expenditure like that. When you have some credit built up, pay everything off.