Usage question

[epicureanism]

I have seen from this forum that keeping usage between 1-9 percent is the best. The problem is... I always pay balance to negative. Does that hurt? How does this compare to keeping it over 10%? Thanks. 

[QAMngrGirl]

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@epicureanism wrote:

I have seen from this forum that keeping usage between 1-9 percent is the best. The problem is... I always pay balance to negative. Does that hurt? How does this compare to keeping it over 10%? Thanks. 

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Someone jump in if I am wrong but don't accounts with a credit balance still report only as $0?

[DaveSignal]

It depends how many cards you have.   I always have some cards that report.   Paying to negative = 0 balance on your credit report, so it appears that you aren't using your credit cards if they are all at 0.   You can keep your total usage ratio down if most of your cards are at 0, but if you have one that reports a low balance it appears as though you are conservatively using your credit and still maintaining a low usage ratio.  Most people experience a FICO that is a bit higher if they control their usage like this.

[epicureanism]

so just to make sure, is it true that negative balance means I have NOT used this card AT ALL in credit reports?

I currently only have a boa cash rewards (just got approved for citi forward but it has not arrived...). I have used this card intensely (I believe it is more than 10k purchase during 5 months). I have 5 credit reports now whose balance are all below 0. I would be really sad if it reports that I have NOT used this card AT ALL.......=(. 

[DaveSignal]

A FICO score is based on a snapshot of whats on your report at any particular time.  Although it takes into account payment history, it does not track balance history.  It just looks at the numbers and what the are at that particular moment.  So, if you only have 1 card and it is at 0 balance (this would result from a statement reporting with a negative balance), you might get docked a few points because FICO treats it as though you aren't using any of your credit.

EDIT:  its not sad at all.  You are in complete control of this part of your score.  You aren't losing history.  Just at that particular moment in time, it appears to FICO as though you have one unused card with no deliquencies.