If you want your credit report to show you as debt free, the timing of your payments is crucial.
When you get your credit card statement every month, it's already too late.
When credit companies send your statement to you, they also report your balance to your credit agencies. That means even if you pay your total balance after receiving your statement, credit agencies still show you carrying a balance.
To appear debt-free, you need to pay your balance in full before the statement date.
Carrying a balance on a credit card won't improve your credit score. While you do need to use credit, and pay it off to improve your credit score, carrying a balance will actually trim points from your score.
