does it improve your credit score to pay off all your credit card bills every month?

I ask this because i was told to keep my balance aroujnd 1-9% utilization. So what gives?

Public Comments

1. Yes, it helps a LOT. I checked out my credit report on myfico.com and they had "simulations"....one of the hypothetical situations I put in was paying off my credit card bills. Even paying off my one credit card ($700) raises my credit score from 609 to 700-something.
2. If you don't pay off your credit cards every month, your credit rating goes in the tank.
3. I pay off any credit debt when it is do in thirty days. Normally I use a debit card to pay day to day things. My credit score is over 800 so I guess it works.
4. I would encourage you to get rid of those credit cards and use your money to buy what you need. You don't need a high credit score if you purchase everything with your own money. Cars, vacations, rentals, hotels, emergencies: they can all be paid for with YOUR money. And when you pay with YOUR money, you don't have to worry about paying something off.
5. A big part of your credit score is the ratio of debt to available limit. You should never use more than 30% of your available credit limit. Paying credit cards in full, keeps that debt percentage low. Plus you don't pay interest and don't sink into debt. Some have the mistaken idea that carrying a balance and making small payments is better for your score. Credit card companies do not report how much you paid. They only report if it was on time or late.