Dear Lee,

I was told that you could NOT raise your credit score by having a credit card, making charges, then paying it off each month.  That I would need to keep a balance and make payments on it.  Is this true?

Also….

Can a Credit Card that is in mine and my wife’s name raise both our credit scores?

Thanks,

The answer to your first question is yes and no...if you already have
a good credit score, you do get points for having a zero balance but
once you get the points that's it.  It will not go higher each month.
On the other hand though if you have a lower credit score say less
than 600...paying a bill each month with a balance will raise your
credit score.  Be sure to keep the balance less than 30% of the credit
line though.  Once you charge more than the 30% your score will tend
to go down even if you pay on time.  One of the biggest points on how
you are scored is available credit. In other words, the closer you get to your credit limits, the lower your score will be.   Hope this helps!

The second question is simpler.  If the card is a joint account it will help
you both evenly.  If you are just an authorized user though, it will not
help your score even if it reports to the credit bureaus.

Thanks,

Lee Haun