Util Question - I'm Being OCD...

[Boldilocks]

We have the Orchard $300 card and have been using it and then PIF to show $0 on the last day of the month (well, we didn't the first month when we didn;lt realise when they repiort, and that hurt us big time!).  Should I leave a balance of a couple of dollars on it this month just to show that it's being used?  I mean, do they really see a $0 and in that "snapshot" moment think that you aren't using the card? 

[nothingman02]

The Bank would know very well how you are using your card. Letting a 0 balance report is good for your UTL as you are aware. Other lenders would not be aware of how you are using your card other than the highest limit you ever achieved.

[Boldilocks]

So why do people bother letting 1-9% util show when it is reported to the CRAs then, instead of just paying in full?

[Boldilocks]

Sorry - that reads as snotty - I'm not being snotty at all, just wondering. 

[llecs]

Define "they". If "they" as in FICO, then, no, there's no historical difference whether you leave a balance on the CC or not. A balance could impact the score as you saw, but FICO doesn't care what the balance was last month.

If "they" is a lender, then YMMV. I've never seen any adverse action by a lender in these forums because someone carried a $0 balance for an extended period of time.

IMO, if the purpose is not to use it but to keep it active, then use it for a cup of coffee every so often just to keep it active. If you don't use it, then keep an eye on any charges that Orchard might through your way, like most subprime lenders do.

[nothingman02]

Also,  letting a 1%-9% report seems to result in better scores than 0 utl.