Credit card balance, 0% utilization or 1%?

[doublespaces]

I've noticed with simulators that its better to carry 1% than 0%... I'm not sure how true this is but this is what I do know: I have two cards. One card was at $1 balance and the other at $0. I used my card that was at $0 and paid it down to $1 balance and let it post to the CRA's. My credit score dropped from 706 to 698. I think the reason is because now I have two revolving cards with an open balance. I am pretty sure it will go back up if I pay off one of the cards, but will it go up more if I pay them both off or will this hurt me as I believed? I was thinking it was better to carry a balance on both cards but keep it at 1% utilization but this isn't true when only dealing with a $1 balance. This may be true for larger balances, but not for me. I'm trying to squeeze every point I can so I'm curious, if I should pay them both off. I'm applying for a mortgage in a month so I need to know asap. Anyone have any experience here? Also, is there a way to get my credit card company(orchard bank and chase) to submit my new balance to the CRA's sooner?

[trumpet-205]

Let one card reports a small balance, while other card report no balance. 0% utilization is bad because it showed no activity instead.

And no, lenders update your credit report at monthly based. No way to get them update at a faster rate.

[Anonymous]

So, what youre saying is that its better for example if I had 1 card w/ a small balance, rather than 2 cards w/ a small balance and 1 card w/ nothing on it?

Lets say I have $20 on a $300 card and $45 on a $500 card.....w/ $2000 total credit extended.....

You're saying that wouldn't be as good as leaving the $20 and paying off the $45 completely?

Thx!

[Anonymous]

Yes, that's how it works. You want to have less than half of your tradelines report a balance.

[Anonymous]

Do AU TLs also matter in this count?

Thanks!