Is zero balance on CC good or bad ?

[Anonymous]

I had a paypal account on my credit report with zero balance and last month i used it in June for $6 only i guess they reported that activity to the CRA's this week as i got a FICO score watch Alert this morning that my balance has increased and how it can hurt my score, but my FICO score went up from 604-617 contary to what it explains.

Your FICO score may have gone up because the following factor is not hurting your FICO score as much as before:

• You've recently been looking for credit.

I am paying off that $6 on 15th July ... will this help or is it always good to have some balance on your card rather than zero balance ? what is good.?

help!!!!!

Message Edited by king82 on 07-11-2009 04:10 PM

[marty56]

My TU score goes up 10 points for reporting 0% util and my EQ goes up 3 points for showing some util.  You should use your cards evey few months but you dont have to report a balance if you PIF before the statement date.  If you want to show a balance, then PIF before the due date.

With no CC debt, it is under your control but not always easy to report the util you want to report.