>Making late payments has a bigger impact on your credit rating than carrying a large balance.
>
>>I have had an average of a couple thousand dollars balance for the past few years, and have been told I have an exceptional credit rating when I bought my house and car. I'm sure there's a fine line though when a balance starts hurting the score.


Indeed.......Why wouldn't a bank want to lend money to somebody who regularly pays it back? Especially when they don't pay it all back but continue to pay interest?

I don't know this for a fact, but I guess that somebody with a history of gettings loans and always paying within the grace period (and therefore not paying any interest) would have a worse credit rating that somebody who consistently makes payments which include the interest. At least I can see where the credit institutions would prefer the second customer.