To build good credit and stay out of debt, you should always aim to pay off your credit card bill in full every month.
If you want to be really on top of your game, it might seem logical to pay off your balance more often, so your card is never in the red. But hold off. It's actually possible to pay off your credit card bill too many times per month. Once is enough. In fact, once, most of the time, is ideal.
"If you're paying with every single transaction, it may not even show that you're even using credit and it's reporting to the credit bureau as a zero balance all the time," Greg McBride, chief financial analyst at Bankrate.com, tells CNBC Make It.
Instead of proving that you can responsibly pay back what you owe, frequently clearing your balance makes it look like you're not using credit at all.