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I have been reading these forums for several months now and I'm greatful for all the information I have learned on here. Here is my first question to the Community.
I had read somewhere that my FICO Score would be better if I kept a small balance on my CC's each month. Something about showing the card was being used. On my previous statement for my PNC Visa and American Express, I had left a balance of $5 and 1$. This month, after a paid collection dropped off my report, I had a score incresse of 23 points. The next day, my credit card companies reported the balances as paid down to $0 on both CC's and my score dropped 18 points. Is this typical? Should I always maintain a balance on my CC's?
Thank you for any responses.
My scores are about 20 points higher now when I have 7 of 9 cards reporting a $0 balance than when I had said 7 cards reporting small $1-$100 balances.
$0 is better.
I'm confused then as to why my score dropped 18 points then. I've looked at one of my prior reports on myFico and this was listed as hurting my score:
There are no recent balances on your revolving credit accounts. Your credit report shows no recent balances on your revolving accounts [?]. Your FICO® Score was hurt because you are not currently demonstrating active revolving credit management. What to do about this: You might consider moderate and responsible use of your credit cards (such as charging low balances and repaying them on time).
you should have one cc with a small balance, and the rest zero. Having no balances indicates lack of usage.
@SusieQ wrote:you should have one cc with a small balance, and the rest zero. Having no balances indicates lack of usage.
^That! +1!
My score dropped from 745 to 720 EQ and i dont know why either..
Thank you all for the information. I'll be sure to keep a small balance on 1 of my cards.