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I have 1 credit card with a $200 limit. The balance is 195 (accdng to Equifax).
If I pay it off, and Equifax reports a 0 balance, will my credit score go up?
Current score 532
It will help. How much depends on other factors on your report. And for under $200, I highly suggest not carrying a balance on a high fee card....bites you in interest and FICO.
IMO
@armyguy90 wrote:I have 1 credit card with a $200 limit. The balance is 195 (accdng to Equifax).
If I pay it off, and Equifax reports a 0 balance, will my credit score go up?
Current score 532
Yes it should help but from now on use it sparingly every few months for a small purchase and pay in full after the statement posts and before the due date. If it reports a zero balance each month your score will actually suffer. On a $200 limit let no more than $18 (9% utilization) report each month.
(myfico)
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802
CC interest free as of 8/09
Time can heal all wounds and a low FICO.
"Hello my name is Sandy and I'm a recovering crediholic".
@MarineVietVet wrote:
@armyguy90 wrote:I have 1 credit card with a $200 limit. The balance is 195 (accdng to Equifax).
If I pay it off, and Equifax reports a 0 balance, will my credit score go up?
Current score 532
Yes it should help but from now on use it sparingly every few months for a small purchase and pay in full after the statement posts and before the due date. If it reports a zero balance each month your score will actually suffer. On a $200 limit let no more than $18 (9% utilization) report each month.
(myfico)
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802
CC interest free as of 8/09
Time can heal all wounds and a low FICO.
"Hello my name is Sandy and I'm a recovering crediholic".
Actually, you want to pay BEFORE the statement cuts. On 99% of cc accts, the balance at statement CUT is what is reported to the CRA's.
But as marinevietvet mentioned...use it sparingly for small purchases to keep it active.
Depending on how long you've had it...ask for a CLI. Most starter cards will give you a bump after you've had them for about 6 or so mos.
What marinevietvet was referring to is that having a 0 balance on all accounts report hurts your score as opposed to letting one or two accounts show a balance. Unfortunately, I don't know if this is true or not if they account that reports a balance is your only revolving account.
@BungalowMo wrote:
@MarineVietVet wrote:
@armyguy90 wrote:I have 1 credit card with a $200 limit. The balance is 195 (accdng to Equifax).
If I pay it off, and Equifax reports a 0 balance, will my credit score go up?
Current score 532
Yes it should help but from now on use it sparingly every few months for a small purchase and pay in full after the statement posts and before the due date. If it reports a zero balance each month your score will actually suffer. On a $200 limit let no more than $18 (9% utilization) report each month.
(myfico)
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802
CC interest free as of 8/09
Time can heal all wounds and a low FICO.
"Hello my name is Sandy and I'm a recovering crediholic".Actually, you want to pay BEFORE the statement cuts. On 99% of cc accts, the balance at statement CUT is what is reported to the CRA's.
But as marinevietvet mentioned...use it sparingly for small purchases to keep it active.
Depending on how long you've had it...ask for a CLI. Most starter cards will give you a bump after you've had them for about 6 or so mos.
BungalowMo wrote:
Actually, you want to pay BEFORE the statement cuts. On 99% of cc accts, the balance at statement CUT is what is reported to the CRA's.
That is true if you want a zero balance to report. I was referring to a small balance reporting and being paid before the due date to avoid any finance charges. I could explained it a little better.
And the discussion continues whether those with only one CC get a bigger boost to their score by reporting a zero balance each month as opposed to a small amount of 1-9%.
I'm with haulingthescoreup. Someone needs to volunteer!!!
Hey well the credit card company updates on the 24th, and it will be updating from a $197 balance last month to a $2 balance this month on a $200 limit, so i will let you know of my score increase.
: )
So you will have a 1% uti ratio....please let us know what happens to score.
Next month....as HTSU hinted, we'd love to know what a zero balance shows on score for a CR with only 1 cc.