Outstanding credit card debt can damage or improve your FICO score. It all depends on you circumstances as a consumer.
Overall, the best way to make a balance work for you is to make your payments on time and do not get too close to the credit limit on any one card. The debt to credit ratio is an important financial indicator that credit card issuers use to evaluate and assign a credit score. When you get close to your maximum debt level the more it adversely affects your credit score by decreasing the ratio.
So, the best way to manage you FICO score is to maintain a healthy cushion of available credit and/or eventually pay off your credit debt completely, but keep the credit card lines open. If you close you account, you will reduce your overall available credit and increase your debt to credit score.
This would defeat the purpose of paying off the debt in the first place.
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