I was told to keep a positive balance on credit card accounts to raise FICO Score
01-15-2013 06:29 AM
Here is some interesting advice a FICO expert told me. I am interested in knowing if people in the community agree:
Instead of just putting unused Credit Cards in the sock drawer or using them every three months just to stay on the good side of the credit card companies, INSTEAD my friend, who works in the Credit Department of a local bank, told me to slightly overpay your credit card by a few dollars and don't ask for a refund for the credit balance. The credit reporting agencies will report a zero balance but because you have a credit balance they have to report for each month there is a balance on the account regardless if you use it or not. On the other hand if you just put the unused credit card in the sock drawer and don't use it with a true zero balance the credit card companies will not report anything that month at all giving the impression you are not using credit and thus hurting your FICO Score.
What do you think of my friends advice? Analysis?