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Is zero balance good for score

Established Member

Is zero balance good for score

My first question is this. In the past week I have paid off two credit cards to a balance of zero. I have two other accounts that have balances. Will having two accounts at zero be a negative on my score. I'm trying to raise my score as high as possible.?

second question is this site offers credit score for $59 a month . Is this the best option for monitoring and checking my score?

thanks

19 REPLIES
Valued Member

Re: Is zero balance good for score

It's best to pay all cards down to zero dollars and let one report a balance of 9% or less in order to achieve maximum scoring potential.

Starting Scores: TU: 598: EQ 542 EX: 604 (Aug 2015)
Current FICO Scores: TU 08: 708 EQ 04: 711 EX 08: 726
Goal Score: 760 FICO across the board



Valued Contributor

Re: Is zero balance good for score


DaBadBoy wrote:
It's best to pay all cards down to zero dollars and let one report a balance of 9% or less in order to achieve maximum scoring potential.

+1

| Navy Cash Rewards VS | Chevron Advantage | Capitol One MC | EQ 668
| Lending Club Personal Loan | Elements FInancial FCU Auto Loan |
Contributor

Re: Is zero balance good for score

If all the CC cards report 0, there would be ~20 or more Fico8 score drop.

 

Note: Do not put balance only on the rewards cards. It must be on CC. The balance on rewards card seems to have only impact on the total debt calculation.


Current:::::::::::::EX8=740, EQ8=740, TU8=760.
12 month goal: EX8=800, EQ8=800, TU8=800.
AMEX BCE, AMEX PRG, AMEX HH, BOA CR, BOA Better CR, BOA PR, BOA TR, Chase AMZ, Chase Freedom, Discover CR, Walmart/Synchrony.
Valued Contributor

Re: Is zero balance good for score


xenon3030 wrote:

Note: Do not put balance only on the rewards cards. It must be on CC. The balance on rewards card seems to have only impact on the total debt calculation.


I'm lost here. What do you mean by "rewards cards"? Are you referring to no preset limit charge cards?

Contributor

Re: Is zero balance good for score

Yep. For example AMEX Gold card.


Current:::::::::::::EX8=740, EQ8=740, TU8=760.
12 month goal: EX8=800, EQ8=800, TU8=800.
AMEX BCE, AMEX PRG, AMEX HH, BOA CR, BOA Better CR, BOA PR, BOA TR, Chase AMZ, Chase Freedom, Discover CR, Walmart/Synchrony.
Established Member

Re: Is zero balance good for score

I just signed up for the three report on myfico. My 8 is 693 eq, 683 exp, 660 tu

ill pay down my other 2 cards.

Community Leader
Senior Contributor

Re: Is zero balance good for score

There are far cheaper ways to monitor your reports and scores than the $30/month myFICO Ultimate product.  It all depends on what your plans are (short, medium, and long term).  And whether you plan to buy a house and if so when.

Contributor

Re: Is zero balance good for score

Fico8 monthly monitoring is free e.g. AMEX provides EX Fico8 and Discover provides TU. You don't need to pay for a service unless you want to montior daily or weekly credit scores, credit reports to prevent fraud or want to check auto-loan score.

 

Anyway, to do all, you can find much cheaper products than 30$/month.


Current:::::::::::::EX8=740, EQ8=740, TU8=760.
12 month goal: EX8=800, EQ8=800, TU8=800.
AMEX BCE, AMEX PRG, AMEX HH, BOA CR, BOA Better CR, BOA PR, BOA TR, Chase AMZ, Chase Freedom, Discover CR, Walmart/Synchrony.
Established Member

Re: Is zero balance good for score

My immediate goal is to just increase my score. Increase a few credit limits. Then just maintain high score