Balance or No Balance

[Timesaves]

Is it better to keep a small balance on credit cards?

When I paid them off, my FICO score dropped.

Thank you

[AllZero]

---

@Timesaves wrote:

Is it better to keep a small balance on credit cards?

When I paid them off, my FICO score dropped.

Thank you

---

Short answer. Report a non zero balance.

[AllZero]

---

@Elizabeth_FICO  wrote:

Elizabeth Warren, Senior Product Manager at myFICO: The FICO® Score measures how well you manage your debt. If you don’t have any debt, the algorithm doesn’t have any data about how well you manage your debt. Think of it like being a fast runner. You may be a very fast runner but if you’ve never run any races it would be hard for anyone else to know that you are a fast runner.

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/We-re-Tom-Quinn-amp-Tommy-Lee-FICO-Score...

---

[Timesaves]

Thank you for the quick response!

[AllZero]

---

@Timesaves wrote:

Thank you for the quick response!

---

You are welcome.