Welcome to the home of Noah Brier. I'm the co-founder of Variance and general internet tinkerer. Most of my writing these days is happening over at Why is this interesting?, a daily email full of interesting stuff. This site has been around since 2004. Feel free to get in touch. Good places to get started are my Framework of the Day posts or my favorite books and podcasts. Get in touch.

You can subscribe to this site via RSS (the humanity!) or .

Do I Need to Carry a Balance to Get Good Credit?

I remember when someone first said this to me, I was in college and DJing and the bartender was giving me financial advice. His argument was that if you pay your balance every month in full then you never build any credit. I remember thinking it was absurd at the time (and told him that), but it’s stuck with me. Anyway, after having the conversation again a few weeks ago and remembering it this morning I decided to check the internet for the answer.

Not surprisingly (to me), the answer appears to be no. Paying off your bill every month in full does build credit since the company is floating you whatever amount you spent for around thirty days (until your statement and due date arrive). Anyway, this is neither here nor there, but just thought it was a useful piece of knowledge (that miraculously doesn’t seem to be on Snopes.

April 29, 2009