Frequent Contributor
Posts: 426
Registered: ‎02-09-2012
Re: Can Somebody Nice Explain "Don't Carry a Balance?"

Johnny_Favorite wrote:

So you have a credit card with a $2000 limit.


You charge $200 bucks on it.


You pay it off.


It reports as zero when it hits because there's no balance.


How exactly do you build credit if it never shows you have a balance due? What am I missing and sorry if this is a dumb question (it probably is)

Hi! It's not a dumb question at all.  From what I've learned on here, it is recommended that you let all credit accounts report zero balances except one, and keep that one at atbout 9%.  This keeps utilization down and helps your FICO score.  People can still see you are using your accounts becuase it reports the "Highest Balance" so they know you are using it, but keeping utl down is always recommended, especially when you may be apping for new accounts, mortgages or cars.  Just my two cents..hope it helps!:smileyhappy:

Slowly building....