Moderator Emeritus
llecs
Posts: 32,881
Registered: ‎08-04-2007
Re: I was told to keep a positive balance on credit card accounts to raise FICO Score

I don't know about that trick, but I know for sure that my unused $0 balance CCs report monthly. They will still add an "OK" tick in the payment history and update the reported date. Now FICO won't ding you for non-CC use (assuming you don't have all $0 balances on all of your credit accounts). But FICO will ignore a CC due to inactivity after several months and the part that is ignored is the balance and CL from my understanding. Age for sure still factors in. I don't know if an overpayment monthly would stop that inactivity or not. In the past I have overpaid my CCs and they automatically refunded me the $$$ after 2-3-4 months whether I wanted that or not.

 

Not using a CC won't hurt your FICO though. You still get credit for the mix of credit, impact upon your scoring bucket, impact to length of history and AAoA. Even the payment history is still factored in. I know that util can be impacted over time though if not used for several months (an unknown in FICO scoring...might be 6 months), but that only matters if you are carrying balances on your other CCs.