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Too many zero balance cards?

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Anonymous
Not applicable

Too many zero balance cards?

Hey all.  I've done wonders in building/fixing my credit over the past two years going from 500 to 700+.  We are looking to refinance our home next summer so I wanted to make sure I'm doing everything I can do to keep my score, or even improve it.

 

So I have five credit cards (below).  All have zero balance except one.  I use the one for all of my day to day expenses just for the points.  I TRY to pay that off too.  The question is, would there be any point in closing any of the zero balance cards?

 

Capital One ($6,500)-$0 balance

American Express ($12,000)-$0 balance

Chase Southwest ($20,000)-usually have a balance but no more than $2,000

Barclays American Airlines ($6,000)-$0 balance

Citibank ($3,500)-$0 balance

Message 1 of 6
5 REPLIES 5
Anonymous
Not applicable

Re: Too many zero balance cards?

No, keep all of your cards.  The more cards w/ $0 balances boosts your scores as long as at least 1 is reporting a small balance.

 

Lookup on here AZEO and read up on it.

Message 2 of 6
RSX
Valued Contributor

Re: Too many zero balance cards?

Agreed. I wouldn't close any. They are helping your history and will help your overal Util if you need to use one.  5 is not too many

 

i would use each one every 2 months for small amounts just to keep them open. And keep using the one you prefer for everything else.  

Dec 16/2019. EX. 721. EQ. 723. TU 746
Jan 25/2024 EX. 774 EQ. 751 TU 758
Inq. EX 2 EQ 3 TU 6 - - CC 2x24, 0x12
Amex BCP $35k - Apple GS $21k - BMW/Elan $19k - Cap1 QS $16.7k - Chase Amazon $13.6k - Chase Bonvoy Bountiful $10k - Chase United Club Infinite $26k - Citi CustomCash $3k - Citi DC $14.5k - CreditUnion1 $9k - DiscoverIT $31.5k - PayBoo - $15.6k - Penfed Gold - $19.3k - USB AltitudeGO -$19k- USBank Cash+ -$25k - PenFed LOC - $20k - USB LOC - $15k
Message 3 of 6
Anonymous
Not applicable

Re: Too many zero balance cards?

Or just rotate them each month for a new card to use.

 

Most of the time though you can just do an Amazon Reload on each one once a year to keep them alive.  Depends on how much effort you want to put into it.

Message 4 of 6
HeavenOhio
Senior Contributor

Re: Too many zero balance cards?

@Anonymous, it looks like the scores in your signature are out of date.

 

You have a great stack of cards, and they present a very good look. Hang onto them.

 

Throughout the refinancing process, you'll want a small balance on one card with the rest reporting zero. The small balance should be at least $5 but not much more. Doing this will give you every available scoring point.

Message 5 of 6
Anonymous
Not applicable

Re: Too many zero balance cards?

And the additional benefit is that mortgage scores love zero balance accounts, the more the better, so closing some of yours might actually harm you in that sense. The smaller the percentage of your accounts that carry a balance, the better. If you currently report a balance on one card, you show 80% of your cards at zero. Close one and then you only show 75% at zero.

Keep them open and keep doing what you’re doing. You’re doing it right.
Message 6 of 6
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