Epic Contributor
Posts: 23,365
Registered: ‎03-19-2007
Re: Does having a $0 balance on all of your accounts hurts your score ?

Util of revolving has three major components: overall % util, the combined effect of % util on each individ card, and the % reporting a balance.

The scoring sub-category your question pertains to is % reporting a balance.

Obviously, having none report a balance gives max under that subcategory.

However, anecdotal experiences of many who post on the site seem to indicate that the scoring of individ util on a card gets slightly better scoring if it reports a very small util (1-9%'ish) than if reported at 0%.  I cant attest to that, as it really makes no sense to me, but the accepted wisdom on the site seems to accept that as fact.


Thus, it appears to be somewhat of a trade-off, with lower % reporting a balance helping in that subcategory, but with the potential offset in scoring of individ card utils.

Since FICO has never released the specific weightings given to the three sub-categories, the net result is speculative.