Reply
Member
lava224
Posts: 8
Registered: ‎05-12-2012
0

CREDIT CARD WITH $0 BALANCES

THIS HAS PROBABLY BEEN REPEATED BEFORE BUT..... HERE IT GOES

 

Currently have 3 credit cards. 2 with $0 balances. 1 with $80 and a $1000 line. I am under the thrershold for debt ratio. Questions is:

Do the 2 cards with $0 balances report every month that the balance is $0  the best way to work the cards? Vs: Having a statement

balance reporting each month with say $40 on each??

Thanks in advance..

Moderator
Shogun
Posts: 12,952
Registered: ‎04-15-2011
0

Re: CREDIT CARD WITH $0 BALANCES

You're doing it right.  Have those report at $0 then one report a minimal amount.  


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+

Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
Valued Contributor
my-own-fico
Posts: 1,237
Registered: ‎01-05-2010
0

Re: CREDIT CARD WITH $0 BALANCES

It's somewhat like the magic pill that'll only work as long as you eat right and exercise. It's just that the pill itself does little more than give you hope and focus. Nothing wrong with that, except perhaps false advertising.

If you practice a heathy financial life by never being late and always keeping your debt low on your credit cards, your score is already so high that it may well not increase from all $0 balances except one small one.

Some enjoy the pill, some do fine without it. :smileyvery-happy:

--

"It's good - we do not have to go to the bank."

I Remember Mama (1948)

The lost luggage office’s trained professional, “Has your plane arrived yet?”
Valued Contributor
Burned2manybridgesB4
Posts: 2,163
Registered: ‎03-15-2012
0

Re: CREDIT CARD WITH $0 BALANCES

Just keep on doing what you are. Good rule of thumb (and I count on others chiming in here) is to keep two @ 0.00, while letting one post a "due balance," but you don't need to carry a balance past the due date (PIF). Since getting high fico is a marathon, not a race, you have time to play with the percentages, and find out which zone will work best for your own profile/bucket. 3 to 8%...


Senior Contributor
Booner72
Posts: 3,889
Registered: ‎05-24-2011
0

Re: CREDIT CARD WITH $0 BALANCES

They say to use your cards so they don't get closed on you - so I'd say at least every 8-12 months buy a coffee and PIF. I haven't used some accounts for that long, and longer, and they are all still open. YMMV.
STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Senior Contributor
Booner72
Posts: 3,889
Registered: ‎05-24-2011
0

Re: CREDIT CARD WITH $0 BALANCES


my-own-fico wrote:

It's somewhat like the magic pill that'll only work as long as you eat right and exercise. It's just that the pill itself does little more than give you hope and focus. Nothing wrong with that, except perhaps false advertising.

If you practice a heathy financial life by never being late and always keeping your debt low on your credit cards, your score is already so high that it may well not increase from all $0 balances except one small one.

Some enjoy the pill, some do fine without it. :smileyvery-happy:

--

"It's good - we do not have to go to the bank."

I Remember Mama (1948)


Some of us around here need fast pointage, especially if going for a mortgage or something.  Every point counts in those desperate situations.  If we had practiced a "healthy financial life" then we probably wouldn't have found this forum. 

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Valued Contributor
my-own-fico
Posts: 1,237
Registered: ‎01-05-2010
0

Re: CREDIT CARD WITH $0 BALANCES


Booner72 wrote:
Some of us around here need fast pointage, especially if going for a mortgage or something.  Every point counts in those desperate situations.  If we had practiced a "healthy financial life" then we probably wouldn't have found this forum. 

 

You're probably referring to the various myFICO forums as a whole. But just in case you meant the Understanding FICO Scoring forum, I have noticed a steady stream of people here  requesting feedback on specific needs of urgent character, generally about moving from the mid or low 600s to something like 680 or 700. For some reason they are attracted to this forum rather than other of the perhaps more suitable myFICO forums such as Rebuilding Your Credit and Mortgage Loans. Maybe it's because their minds have zoomed in on the word score, and the title of this forum includes that. I'd be interested in finding out why the new of these posters come to this particular forum. Certainly understanding FICO scoring is more along the lines of asking for a bank loan when you don't need it.

The lost luggage office’s trained professional, “Has your plane arrived yet?”
Senior Contributor
Booner72
Posts: 3,889
Registered: ‎05-24-2011
0

Re: CREDIT CARD WITH $0 BALANCES


my-own-fico wrote:

Booner72 wrote:
Some of us around here need fast pointage, especially if going for a mortgage or something.  Every point counts in those desperate situations.  If we had practiced a "healthy financial life" then we probably wouldn't have found this forum. 

 

You're probably referring to the various myFICO forums as a whole. But just in case you meant the Understanding FICO Scoring forum, I have noticed a steady stream of people here  requesting feedback on specific needs of urgent character, generally about moving from the mid or low 600s to something like 680 or 700. For some reason they are attracted to this forum rather than other of the perhaps more suitable myFICO forums such as Rebuilding Your Credit and Mortgage Loans. Maybe it's because their minds have zoomed in on the word score, and the title of this forum includes that. I'd be interested in finding out why the new of these posters come to this particular forum. Certainly understanding FICO scoring is more along the lines of asking for a bank loan when you don't need it.


No, I was referring to your advice to OP.   I spent a lot of time in the Understanding when I first found the forum and was working my A off to get the house.  I wanted to know How things worked and why and when and where, so I could do whatever I had to do.  Ultimately, it worked for me, and I am grateful.  I did NOT practice healthy finances, and just threw bills in the backseat, unopened, until they turned into a mountain, at which time they would get thrown out.  So I relate a lot to OP's initial question.    it has nothing to do with "zooming in" to the word FICO, it's the word Understanding.  Certainly Undertanding FICO Scoring has everything to do with asking the bank for a loan, when I DID need it.

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
New Member
goose1
Posts: 10
Registered: ‎09-03-2012
0

Re: CREDIT CARD WITH $0 BALANCES

In my limited experience it seems to my via FICO scoring that as long as your UTI is under 10% (although 9% seems to by the magic number) there is minimal effect. Although as always YMMV

NFCU Visa Signature17.5k, AMEX BCE 13.3k, Discover IT 8K, USAA Visa 4K

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}