 TITLE: Should I Pay Bills with a Credit Card or Checking Account? CONTENT: Paying Bills with a Credit Card Could Impact Your Credit Score\n--------------------------------------------------------------\nOne risk that comes with putting your bills on a credit card is the possibility of running up a balance and not paying it off in full. If you rack up $500 on a card and only make the minimum payment, you'll be hit with interest charges until the balance is paid off completely.\nEven if you pay off your balance in full every month, your credit utilization ratio could increase and hurt your credit score. Credit utilization is how much of your available credit you use every month, and is the second-most important factor in your credit score. This factor can determine up to 30% of your credit score.\nTo determine your credit utilization ratio, divide the total of your current credit card balances by your available credit. For example, if your credit card balances total $4,000, and your total credit limit across all your cards is $10,000, your utilization ratio is 40%. A credit utilization ratio of 30% or more will likely decrease your credit score. Why? A high percentage makes lenders think you're relying too heavily on credit cards to fund your lifestyle. For the best scores, it's a good idea to keep your utilization below 10%.\nA simple way to prevent high utilization is to pay your credit card bill twice in one month. Your statement balance is what's used to determine your credit utilization ratio, so if you can pay part of your bill off before the statement generates, you'll be able to keep your utilization ratio low. END