Your friend tells you that carrying a small balance on your credit card every month will help build your credit score faster. Is this true?

This is one of the most persistent and costly credit myths. Your score does not require you to carry a balance or pay interest to creditors. Payment history is built by making on-time payments, and utilization is calculated based on your statement balance — not whether you paid it off. Paying your balance in full each month avoids interest charges and still builds your credit score just as effectively as carrying a balance would.