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Long-term $0 balance reporting

Frequent Contributor

Long-term $0 balance reporting

I have a couple of credit cards that I use monthly and pay off before the closing date to avoid showing a balance on my credit report. I read on anothing Site that FICO will not count my zero balance after six months because they would consider these accounts as dormant for scoring purposes, even though they do report activity.


Could someone share their opinion???



Message Edited by llecs on 03-26-2009 11:20 AM
Message 1 of 4
Moderator Emeritus

Re: Long-term $0 balance reporting

Cleanmachine, I split your post to kepp the other thread on topic. I had to change the subject line but touched nothing else. If you'd like to change the subject line, feel free to click "Options" and then "Edit Message".

To answer the question, I've never heard that. Now if you don't use your CC over a period of time with a $0 balance, FICO may opt to read the CC as an inactive account and that may impact your score.
Message Edited by llecs on 03-26-2009 11:23 AM
Message 2 of 4
Frequent Contributor

Re: Long-term $0 balance reporting



No problem with the change of topic. Sorry about that. Did not intent to get off topic.



As stated, I use several credit cards during the month and pay in full before closing date to keep my accounts active and they report a zero balance. These same account acutally show my " monthly payment" and "recent payment" although they also show zero balances.


I do have several accounts that only show the credit limit and current balances.


My question would be, since I continously show zero balances on my credit reports, and it does show activity with the monthly payment and recent payments will FICO, at some point of time ,no longer consider these accounts as active for scoring purposes??


Guess I am have problems as to what is considered "DORMANT" and the meaning of "ACTIVITY".


Message 3 of 4
Established Contributor

Re: Long-term $0 balance reporting

The 0 balances seem to have no effect. I every card and PIF before the statement drops on all but one tradeline. I rotate the tradeline with a balance reporting each month. Most tradelines show up to 6 months of 0 balances reporting. My Sam's club tradeline currently has 19 months of 0 balances recorded on my Experian report. I use my Sam's club card every month and PIF at the store with cash before the statement drops.


I have set my dormant account notification at Scorewatch for 2 months. I have only been notified about a dormant card being used (after 2 month inactivity) twice in the last two years.


I believe that means that FICO does not treat 0 balances as the criteria for determining that a tradeline is dormant or "inactive". I believe that the date of last activity is what FICO uses to determine length of "inactivity".


I hope that I have provided the answer that you were looking for. Just use the cards at least once every three months and you should be fine. The "0 balances" really don't seem to mean anything as far as inactivity is concerned.

Message 4 of 4
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