00:00Doesn't it feel like everyone is coming up with new tips to build great credit?
00:04But in the process, many myths have been spreading, and we are here to debunk them.
00:09Leaving a balance on your credit card is not necessarily good for your credit score.
00:13NerdWallet explains it can be harmful instead if the balance is a large percentage of your available credit limit.
00:20Also, you're paying a high interest rate over the balance in the account.
00:24Another myth, closing a credit card you don't use can help your credit score.
00:28On the contrary, it can damage it.
00:31Closing a card may ding your credit score by increasing your credit utilization.
00:35NerdWallet's tip is to charge a small recurring expense, like a monthly subscription, to the card,
00:41and set up auto-pay to wipe out the credit card balance each month.
00:45Paying utility bills can boost your score.
00:48Also wrong.
00:49CNBC says although 68% of Americans believe this to be true,
00:54most utility companies do not report payment histories to credit bureaus.
00:58And even if they did, not all credit scoring companies consider that type of bill payment information.
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