AZEO: How low of a balance is TOO low?

[Cardman2]

I've noticed that most recommendations for the AZEO technique include leaving a small balance of at least $5 on one account.

My question: Why? Is anything lower considered a "no balance" for scoring purposes?  

I'm asking because I have one card that reported a $2 balance, and my only other 2 credit cards are reporting no balance. Should I be expecting an ALL ZERO PENALTY since I failed to ensure the card reported a $5+ balance? 

Just curious...

[Brian_Earl_Spilner]

The reason for at least $5 is some cards won't report a balance if it's too small, or the lender will eat it. Discover does that with up to $2.

[Cardman2]

Incorrect. I have 1 (out of 3) cards that's reported a balance of $2. The other 2 cards are at $0. I'll certainly increase the balance next month, but I'm wondering about the possibility of the balance being too low and getting hit with the ALL ZERO BAL. penalty. 

And for my own understanding, I'm also trying to figure out why it's usually recommended around here to have at least a balance of $5. Is that the lowest amount that'll be considered 1% util. despite the cards CL?

Thanks for the link! 

[AllZero]

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@Cardman2 wrote:

Incorrect. I have 1 (out of 3) cards that's reported a balance of $2. The other 2 cards are at $0. I'll certainly increase the balance next month, but I'm wondering about the possibility of the balance being too low and getting hit with the ALL ZERO BAL. penalty. 

And for my own understanding, I'm also trying to figure out why it's usually recommended around here to have at least a balance of $5. Is that the lowest amount that'll be considered 1% util. despite the cards CL?

Thanks for the link! 

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Which card had $2 reporting? I recall reading a post about a Discover card forgiving that low amount and reporting zero. Discover and AZEO - Beware the $2 Rule!!!

[AllZero]

[K-in-Boston]

Correct.  @Cardman2  I have moved your replies to another poster and the confusion caused by it to your thread.

[Cardman2]

Thanks for your help K-in-Boston! Sorry about the mistake and confusion. 

[Anonymous]

My Experian score dropped 17 points today!!! I keep a low balance on one card (around $200 on Discover), but I forgot about a return that shipped back a couple weeks ago from which the refund left me with a negative balance -$120.00 just as Discover reported my monthly balance. I also closed my Credit One account three-weeks ago, which may have contributed to the drop as well.