Re: To Pay or Not to Pay, that is the Question..
01-22-2013 12:16 PM
Ok, so I imagine this question has been asked over a 1,000 times but I keep reading something different. Can someone please explain to me the difference of paying a cc completely to 0 or leaving 9% utilization on it? I have never let the balance go to 0 in fear of not having reoccurring account (OK) on my credit. Do I pay them completely off or leave them with a really low balance? Thanks in advance!
That depends what you want to do! If you have multiple cards, many people like to pay off the accounts to 0 while leaving one account with a 1-9% utilization amount over their total credit lines, in order to really maximize their scores.
If you're not planning on apping for anything anytime soon, this really isn't necessary. Feel free to have a small balances on whatever you want!
FICOS: EX 764 EQ 704 TU 750 VantageScore 3.0: EX 745 EQ 753 TU 753 Credit Sesame (EX) 749 Credit.com (EX) 788