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Will 0% credit card balance hurt my score?

Frequent Contributor

Will 0% credit card balance hurt my score?

I have seven credit cards and I maintain 2% utilization and that is on one card. If I leave things as they are now, I will have a two week period that will show zero utilization. I switched cards that show a balance and with the statement dates as they are it will look like I have zero utilization for those two weeks. For those two weeks with Zero balance will my score go down?

Equifax FICO 781, Transunion FICO 821, Experian FICO 807,

810 goal on all three by 3-1-2015
13 REPLIES
Super Contributor

Re: Will 0% credit card balance hurt my score?


Slab wrote:

I have seven credit cards and I maintain 2% utilization and that is on one card. If I leave things as they are now, I will have a two week period that will show zero utilization. I switched cards that show a balance and with the statement dates as they are it will look like I have zero utilization for tose two weeks. For those two weeks with Zero balance will my score go down?


Cards only report to CR once a month so even tho you had 2 weeks at zero the next 2 will be reported

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Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
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Do you know the cards benefits? Is it worth the HP?
Super Contributor

Re: Will 0% credit card balance hurt my score?

It's possible, as FICO scoring typically likes to see a small balance on a card or two. But I wouldn't expect it to be a significant change.
March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Senior Contributor

Re: Will 0% credit card balance hurt my score?

...and unless you intend to apply for something, who cares?

 

You can always re adjust your balance next month.  Smiley Happy

Zero percent financing is where the devil lives...

10/01/17 Fico8 scores: EX 660, EQ 647, TU 663
Valued Member

Re: Will 0% credit card balance hurt my score?

Maintain a balance if your intent is a short term CLI. Keep it under 19%, keep it under 10% if you're not sure where your numbers are at, just keep it low.

Walmart TU Score 740
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Valued Contributor

Re: Will 0% credit card balance hurt my score?


tcbofade wrote:

...and unless you intend to apply for something, who cares?

 

You can always re adjust your balance next month.  Smiley Happy


+1 - 

Ray

** Every Card has a Job, and Every Card does its Job **
Established Contributor

Re: Will 0% credit card balance hurt my score?

OP,

 

I think you're confusing yourself. The only balance that shows on your credit reports is the balance on the day your card issuer reports to the bureau....usually the statement closing date with some exceptions here and there. 

 

You can run at 60% utilization for 28 out of 30 days. But if the those two other days show a zero balance and happen to be your statement closing dates and those are the dates reported, you will show a zero balance on your credit reports for two straight months. It's that simple.

 

Know the dates that your cards report to the bureaus and you control what utilization shows up for the next 30 days or so til the next reporting. Moreover, if you have pending transactions that haven't posted at the time of the reporting, they won't show up on the reported balance....in my experience.

Start (Sept 2011): low-mid 600s. NOW: TU FICO: 801, EQ FICO 808, EX FICO 798 (PSECU). Goal: Achieved! Now Maintain!
Moderator

Re: Will 0% credit card balance hurt my score?


ztnjpv wrote:

OP,

 

I think you're confusing yourself. The only balance that shows on your credit reports is the balance on the day your card issuer reports to the bureau....usually the statement closing date with some exceptions here and there. 

 

You can run at 60% utilization for 28 out of 30 days. But if the those two other days show a zero balance and happen to be your statement closing dates and those are the dates reported, you will show a zero balance on your credit reports for two straight months. It's that simple.

 

Know the dates that your cards report to the bureaus and you control what utilization shows up for the next 30 days or so til the next reporting. Moreover, if you have pending transactions that haven't posted at the time of the reporting, they won't show up on the reported balance....in my experience.


OT, but lucky you Smiley Happy.  For me, BOFA / Chase / Amex all have a nasty habit of letting trasactions pend for sometimes 5 days and then clear them right before statement cut heh.  Fortunately I don't worry about this overly much and when it does matter (mortgage app), I'll just let the tradeline in the week leading up to statement cut while floating expenses on the charge card.

 

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 758, EX 2 758, EQ 8 795, TU 8 762, EX 8 786 (7/28/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


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Established Contributor

Re: Will 0% credit card balance hurt my score?

OT, but lucky you :smileyhappy:.  For me, BOFA / Chase / Amex all have a nasty habit of letting trasactions pend for sometimes 5 days and then clear them right before statement cut heh.  Fortunately I don't worry about this overly much and when it does matter (mortgage app), I'll just let the tradeline in the week leading up to statement cut while floating expenses on the charge card.

 

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That goes goes hand in hand with what I am talking about. Transcactions tend to stay pending for 3-5 days....so one needs to take that into account if they are trying to control the visible balance on credit reports. Personally, I try not to charge anything big during this "danger period". Once I get to 1-2 days before the statement closing, I'll use the card again with the confidence it won't show up on the current cycle....and thus will not effect my reported balance. I am especially careful with this if I plan to apply for something in the following weeks and want to be extra manipulative of my visible balances/utilization. 

Start (Sept 2011): low-mid 600s. NOW: TU FICO: 801, EQ FICO 808, EX FICO 798 (PSECU). Goal: Achieved! Now Maintain!
Moderator

Re: Will 0% credit card balance hurt my score?


ztnjpv wrote:

OT, but lucky you :smileyhappy:.  For me, BOFA / Chase / Amex all have a nasty habit of letting trasactions pend for sometimes 5 days and then clear them right before statement cut heh.  Fortunately I don't worry about this overly much and when it does matter (mortgage app), I'll just let the tradeline in the week leading up to statement cut while floating expenses on the charge card.

 

-----------------------------------------------------------------------------------------

 


That goes goes hand in hand with what I am talking about. Transcactions tend to stay pending for 3-5 days....so one needs to take that into account if they are trying to control the visible balance on credit reports. Personally, I try not to charge anything big during this "danger period". Once I get to 1-2 days before the statement closing, I'll use the card again with the confidence it won't show up on the current cycle....and thus will not effect my reported balance. I am especially careful with this if I plan to apply for something in the following weeks and want to be extra manipulative of my visible balances/utilization. 


Yeah the flipside is I've done similar and some transactions are posted immediately.  I should've put that in my prior message, my apologies on that.  In between rounds of laundry... but I find it a little irritating so I simply wait for the statement to close before I use the card again.  I lose out on marginal rewards, but for my own sanity, it works better for me.

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 758, EX 2 758, EQ 8 795, TU 8 762, EX 8 786 (7/28/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


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