Scores went down after credit card balances were paid off

[chaparritaboricua]

I'm curious hass anyone else experienced your scores losing points after all balances have been paid down to zero. I didn't close any accounts. Any ideas?

[simplynoir]

For optimal FICO scoring seems the ideal situation is to let all but one card to report 0% utilization and with the one remaining card let it post a balance of <9% of that's card's CL.

[Anonymous]

Exactly as @simplynoir said.

I recently had planned to leave a $3 balance at statement cut on one card but forgot and paid it in full.  My FICOs all dropped up to 20 points within a week because of my mistake of paying that card in full and none of my other cards reporting a balance.  Waiting til 5/15 for a different card to post a $5 balance at statement cut and the score should rebound back up.

[chaparritaboricua]

Ok. Imho that's crazy. Trying to clean up my credit and have been watching the numbers go up and down like a crazy person but I have always thought that you pay off your balance, you are showing you are responsible enough...but now I know. Thanks!

[chaparritaboricua]

My first premier (unsecured) and my cap. One (secured) are at zero. My new York & co. And torrid have about $100 balances...ill just remember to leave $5 on each.

I've been reading these forums for a year and I can honestly say you guys are awesome with all the useful information. Thanks so much. I soon hope to post that I hit a 700 on my cs ...that's a dream right now.

[Anonymous]

Not showing any utilization tells creditors that you may just have cards that you never use and customers who don't use any cards are higher risk for the bank not making a profit.  By putting just $5 on a card, it tells others that you DO use credit, but you use it wisely without running high balances.

[Anonymous]

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@chaparritaboricua wrote:
My first premier (unsecured) and my cap. One (secured) are at zero. My new York & co. And torrid have about $100 balances...ill just remember to leave $5 on each.

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Actually, just leave $5 on ONE card, not on every card.  ONE card showing a small balance (lower than 9%, higher than $0) is perfect for FICO scoring.

[chaparritaboricua]

Thanks....will do!

[HeavenOhio]

Always pay the statement balance in full to avoid interest. The balance you leave should come from new charges.

[simplynoir]

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@HeavenOhio wrote:

Always pay the statement balance in full to avoid interest. The balance you leave should come from new charges.

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What I do is let one of my Quicksilver cards have the Netflix recurring charge on it that way that's the only new balance every month. It's the only thing being charged on that particular card so makes it easeier for me to not make that mistake of paying it off when the next statement generates.