What about the credit card? We pay it off every month, but there's always a balance. Does that have the same effect as if the average balance were in a savings account?
What about the credit card? We pay it off every month, but there's always a balance. Does that have the same effect as if the average balance were in a savings account?
That's not too bad. If I have 2 or 3 K as an average balance, that's way way less than the $125K you were using as an example. I had expected the credit card to score worse than a bank account, because the bank skims a bit from every business that takes my card. But I didn't know how to calculate how much worse.
What about the credit card? We pay it off every month, but there's always a balance. Does that have the same effect as if the average balance were in a savings account?
yep, and that's one reason we're going to cut up credit cards at year's end at Third Act
That's not too bad. If I have 2 or 3 K as an average balance, that's way way less than the $125K you were using as an example. I had expected the credit card to score worse than a bank account, because the bank skims a bit from every business that takes my card. But I didn't know how to calculate how much worse.