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There are really two issues involved. One is whether the individual card vendor likes balances or not. The other is how balances affect FICO scores.
First issue: Some card vendors like balances, some don't. Discover and Barclays like balances. Amex would rather see zero on every statement. It varies and is a huge topic of discussion on these forums as people try to figure out the magic formulas for each card. I don't know about Citi, but if someone connected with Citi says they like balances, then assume they do.
Second issue: For credit scoring purposes, everybody around here will tell you that your best bet is to keep a balance of 9% or less on ONE card, and you choose which card. For scoring purposes you may want a balance on Citi this month and on BofA (or whatever) the next.
If you're aiming for the best CLI you can get with Citi, do what you think Citi prefers. If you're aiming for a good score to app for other cards, do what FICO likes best.
Your branch manager is full of crap. Of course Citi prefers people to carry a balance because they make money off that. But the question is, are you going to do something to solely benefit the bank or yourself? There is absolutely no need to carry a balance i.e. pay interest, in order to benefit your credit report - score or approval wise.
@parakleet wrote:Your branch manager is full of crap. Of course Citi prefers people to carry a balance because they make money off that. But the question is, are you going to do something to solely benefit the bank or yourself? There is absolutely no need to carry a balance i.e. pay interest, in order to benefit your credit report - score or approval wise.
The bank manager may not be full of crap IF the question is "What's the best way to get long-term luv from Citi."
Certainly there is no need to carry a balance from month to month or to pay interest (though for scoring purposes there IS a need to have a balance report on at least one card every month to show credit activity; you can then PIF after the statement date to avoid paying interest). But if the OP specifically wants to get growth from his Citi card and-or a good FICO score, then he's got a valid question to which the bank manager might have a valid answer.
If you plan to apply for new cards then pay the card down. A card at almost 50% doesn't look good. It's only 900 though, so it may not be a big deal. I have never carried a balance with Citi and have gotten increases. My mom has been carrying a balance almost to the limit while it's at zero percent and Citi raised her limit by 4000 or something after six months, so they do appear to like carrying balances.
@loviedovie wrote:
I DO think it sucks that Citi pulled so many inquiries to give me that card... my EQ score is 30pts lower than the other ones and that's why.. WIll that just be forever? How long do those take to fall off?
The inquiries have less of an impact after 6 months, stop affecting your score after 1 year and drop off after 2 years. Citi seems HP in my opinion. Good luck with your account.