Carrying A Small Balance On Cards

[chrisw1968uk]

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?

[thornback]

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. 

[Remedios]

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

Which one are you talking about?

[K-in-Boston]

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.

[chrisw1968uk]

Letting the balance get reported

[Kforce]

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.