We all know that credit cards help you build your credit history. However, some people think that in order to build your credit score you have to carry a balance on your card at the end of the month. This is not true. You will build your credit history whether you pay your credit card off every month or carry a balance. In fact, it is actually healthier to pay off the balance on time every month. When you carry a balance you have to pay interest. The more money you carry over, the more interest you end up paying in the long run.
If you do end up carrying a balance from month to month make sure it is a small one. It is also important to keep a low usage ratio. If you credit limit is $5,000 and you carry a balance of $2,500 that is a 50% usage ratio which is not good. You should keep your credit card usage ratio as low as possible.