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I have a zero balance on a card...Do i still need to charge?

New Visitor

I have a zero balance on a card...Do i still need to charge?

Since I have a zero balance I no longer have to make payments.  Should I keep it like this or charge something very small each month to keep making payments and help my payment history?  does FICO care if i have a zero balance or will it hurt me because im not managing this account?
6 REPLIES
Established Contributor

Re: I have a zero balance on a card...Do i still need to charge?



JYoung214 wrote:
Since I have a zero balance I no longer have to make payments. Should I keep it like this or charge something very small each month to keep making payments and help my payment history? does FICO care if i have a zero balance or will it hurt me because im not managing this account?



If you just zero'd it out then it won't hurt you. Not now anyway. But you'll want to use it once in a while. Don't let it sit for 6 months or something like that with no activity.

This is what I've been told.
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Credit repair - the Ski Mask Way.
New Visitor

Re: I have a zero balance on a card...Do i still need to charge?

I have a fraud liability protection program that charges me $5 a month.  Maybe i should keep this activated and just pay it off each month to show activity and on time payment history.  Agree?
 
 
FYI :  I cut the credit card into a million pieces so i dont have the temptation of using it!
Moderator Emeritus

Re: I have a zero balance on a card...Do i still need to charge?

Using a card monthly is not necessary.  As long as you show actiuvuty every three months or so, it should continue to figure in to your utilization and not go inactive.
Moderator Emeritus

Re: I have a zero balance on a card...Do i still need to charge?



JYoung214 wrote:
I have a fraud liability protection program that charges me $5 a month.  Maybe i should keep this activated and just pay it off each month to show activity and on time payment history.  Agree?
 
 
FYI :  I cut the credit card into a million pieces so i dont have the temptation of using it!


I'd get rid of the "fraud liability protection."  By law you're responsible only for the first $50 if your card is stolen, etc. and you report it promptly.  But most Visa and MC issuers have a ZERO liability policy -- so if you report the fradulent charges to them right away and in writing, you won't have to pay for those charges.  Paying $60/year for something you get for free is a rip-off.  JMHO.
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Bartender, bring another round of FICOtinis please!

9.4.2011: TU 805. EQ 815.
Regular Contributor

Re: I have a zero balance on a card...Do i still need to charge?

Please do yourself a favor and CANCEL this type of insurance immediately...it's basically known as "suckers' insurance."  You don't need this at all, especially with your present credit card balance. Period.  Call and cancel now.
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Valued Contributor

Re: I have a zero balance on a card...Do i still need to charge?

Sockedrawer it and about ev. 4 mos buy some gum or the cheapest thing you can possibly buy on the card.