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allow all cards to report a small balance??

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Established Contributor

allow all cards to report a small balance??

Hi all,

 

As I am preparing for the mortgage process, I was given advice by one of the people over at the broker that I should allow all cards to report a small balance, such as $10. This seems contradictory to what I have learned over the past year here on myFIco. I have been using the 'Pay all Cards and allow ONE to report a 9% balance" method for most months. Is this accurate? Thoughts?

FICO® EQ 717 (3/5/15); TU08 732 (3/5/15); EX: 723 (3/5/15) - Last app 3/15/15; Inquiries: A TON!

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Starting Scores: 590s on 12/2013. Hover over card image to view details! *After Amex approvals - [I was supposed to be] Gardening!*
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Moderator Emerita

Re: allow all cards to report a small balance??


@IamB2 wrote:

Hi all,

 

As I am preparing for the mortgage process, I was given advice by one of the people over at the broker that I should allow all cards to report a small balance, such as $10. This seems contradictory to what I have learned over the past year here on myFIco. I have been using the 'Pay all Cards and allow ONE to report a 9% balance" method for most months. Is this accurate? Thoughts?


Wow...scary. I would run away from that broker if they are giving that type of advice.

 

No, do not let all of the cards report a small balance. Your score will get dinged because all the cards are reporting a balance!

 

Did they say why they want you to do that?

Message 2 of 7
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Established Contributor

Re: allow all cards to report a small balance??

No way. Bad advice. Let one or two cards report a balance.

Current Score: TU: 674 | EQ: 722 | EX: 717 | Last Inq. 2/16/15...Locked Up in The Garden
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Message 3 of 7
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Established Contributor

Re: allow all cards to report a small balance??


@StartingOver10 wrote:

Wow...scary. I would run away from that broker if they are giving that type of advice.

 

No, do not let all of the cards report a small balance. Your score will get dinged because all the cards are reporting a balance!

 

Did they say why they want you to do that?


 That made no sense. I am done with this broker. Thank you so much for confirming my suspicions. No idea why they would ask that.

FICO® EQ 717 (3/5/15); TU08 732 (3/5/15); EX: 723 (3/5/15) - Last app 3/15/15; Inquiries: A TON!

CITI ThankYou Preferred - CL: $2,000




Starting Scores: 590s on 12/2013. Hover over card image to view details! *After Amex approvals - [I was supposed to be] Gardening!*
Message 4 of 7
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Established Contributor

Re: allow all cards to report a small balance??


@kjel wrote:

No way. Bad advice. Let one or two cards report a balance.


Thank you. I am not liking the idea at all..

FICO® EQ 717 (3/5/15); TU08 732 (3/5/15); EX: 723 (3/5/15) - Last app 3/15/15; Inquiries: A TON!

CITI ThankYou Preferred - CL: $2,000




Starting Scores: 590s on 12/2013. Hover over card image to view details! *After Amex approvals - [I was supposed to be] Gardening!*
Message 5 of 7
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Established Contributor

Re: allow all cards to report a small balance??

Welll actually my mortgage banker gave me the same advice.  I foloowed everything else they said but this one as for me it would be to easy to forget that 5 dollar charge on a card i don't normally use.

 

BUT i did ask why because i also found the request odd.   The answer was that they want to see  a responsible use of credit not just the availability of it.  So I took a slightly different approacch and rather then letting them all report a balance I just rotated them so that each card was used for a month.  once i did that on all cards i went back to normal.  (of course I don't have that many)  

 

I love my mortgage banker so would not leave just because of this request.  


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Goal Score: 750
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Re: allow all cards to report a small balance??

Terrible advice, but you should not do the exact opposite either. I wrote on my blog on what I would do to maximize my score in the short term. Feel free to check it out: http://hiepsfinance.com/2014/11/04/how-do-i-improve-my-fico-credit-score-in-a-month/

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