topic Re: Carrying A Small Balance On Cards in General Credit Topics

Carrying A Small Balance On Cards

chrisw1968uk — Mon, 25 May 2020 19:18:12 GMT

Hi All

I know that it is best to carry a small balance (1-9%) to maximise your FICO, I currently have a 1.1% balance reporting - I tried that thing where you can enter different scenarios for your credit - and the projected score went up quite a bit with 0% reporting, is there any definitive answer to whether to leave a balance or not?

Re: Carrying A Small Balance On Cards

thornback — Mon, 25 May 2020 19:23:33 GMT

There is a definitive penalty for having all cards report a zero balance (' no revolving credit usage'), which is why it's recommended to allow at least one card report. The penalty is typically 10-20 points, depending on profile.

Feel free to test it to see how your profile responds. Any points lost will be regained once you let a balance report again.

Re: Carrying A Small Balance On Cards

Remedios — Mon, 25 May 2020 19:23:58 GMT

I think you're mixing up carrying balance and letting balance report.

Which one are you talking about?

Re: Carrying A Small Balance On Cards

K-in-Boston — Mon, 25 May 2020 19:24:44 GMT

Carrying a balance and having a balance reporting at statement close are two different things. You will pay interest for the first. The latter is recommended on at least 1 card as there is usually a sizable score ding for all revolving accounts at 0%. You're more of a risk for using no credit than you are for using it responsibly.

Re: Carrying A Small Balance On Cards

chrisw1968uk — Mon, 25 May 2020 19:26:33 GMT

Letting the balance get reported

Re: Carrying A Small Balance On Cards

Kforce — Mon, 25 May 2020 19:35:12 GMT

One major credit card with 5-10 dollars and all other cards at zero. (AZEO)

Some can have <1 % report on one card and see the same gain.

People with a moderate #of cards >8 sometimes have the same scores with 2 card reporting only a few dollars each.