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Is zero balance good for score

Established Member

Is zero balance good for score

My first question is this. In the past week I have paid off two credit cards to a balance of zero. I have two other accounts that have balances. Will having two accounts at zero be a negative on my score. I'm trying to raise my score as high as possible.?

second question is this site offers credit score for $59 a month . Is this the best option for monitoring and checking my score?

thanks

Message 1 of 20
19 REPLIES
Valued Member

Re: Is zero balance good for score

It's best to pay all cards down to zero dollars and let one report a balance of 9% or less in order to achieve maximum scoring potential.

Starting Scores: TU: 598: EQ 542 EX: 604 (Aug 2015)
Current FICO Score: TU 08: 748 EQ 04: 754 EX 08 FICO: 768 as of 2/12/18
Goal Score: 760 FICO across the board



Message 2 of 20
Valued Contributor

Re: Is zero balance good for score


DaBadBoy wrote:
It's best to pay all cards down to zero dollars and let one report a balance of 9% or less in order to achieve maximum scoring potential.

+1

| EQ 677
| Arrowhead CU Personal Loan | Arrowhead CU Auto Loan |
Message 3 of 20
Regular Contributor

Re: Is zero balance good for score

If all the CC cards report 0, there would be ~20 or more Fico8 score drop.

 

Note: Do not put balance only on the rewards cards. It must be on CC. The balance on rewards card seems to have only impact on the total debt calculation.


Current:::::::::::::EX8=760, EQ8=750, TU8=760.
12 month goal: EX8=800, EQ8=800, TU8=800.
AMEX BCE, AMEX PRG, AMEX HH, BOA CR, BOA Better CR, BOA PR, BOA TR, Chase AMZ, Chase Freedom, Discover CR, Uber, Walmart/Synchrony.
Message 4 of 20
Community Leader
Valued Contributor

Re: Is zero balance good for score


xenon3030 wrote:

Note: Do not put balance only on the rewards cards. It must be on CC. The balance on rewards card seems to have only impact on the total debt calculation.


I'm lost here. What do you mean by "rewards cards"? Are you referring to no preset limit charge cards?

Message 5 of 20
Regular Contributor

Re: Is zero balance good for score

Yep. For example AMEX Gold card.


Current:::::::::::::EX8=760, EQ8=750, TU8=760.
12 month goal: EX8=800, EQ8=800, TU8=800.
AMEX BCE, AMEX PRG, AMEX HH, BOA CR, BOA Better CR, BOA PR, BOA TR, Chase AMZ, Chase Freedom, Discover CR, Uber, Walmart/Synchrony.
Message 6 of 20
Established Member

Re: Is zero balance good for score

I just signed up for the three report on myfico. My 8 is 693 eq, 683 exp, 660 tu

ill pay down my other 2 cards.

Message 7 of 20
Community Leader
Super Contributor

Re: Is zero balance good for score

There are far cheaper ways to monitor your reports and scores than the $30/month myFICO Ultimate product.  It all depends on what your plans are (short, medium, and long term).  And whether you plan to buy a house and if so when.

Message 8 of 20
Regular Contributor

Re: Is zero balance good for score

Fico8 monthly monitoring is free e.g. AMEX provides EX Fico8 and Discover provides TU. You don't need to pay for a service unless you want to montior daily or weekly credit scores, credit reports to prevent fraud or want to check auto-loan score.

 

Anyway, to do all, you can find much cheaper products than 30$/month.


Current:::::::::::::EX8=760, EQ8=750, TU8=760.
12 month goal: EX8=800, EQ8=800, TU8=800.
AMEX BCE, AMEX PRG, AMEX HH, BOA CR, BOA Better CR, BOA PR, BOA TR, Chase AMZ, Chase Freedom, Discover CR, Uber, Walmart/Synchrony.
Message 9 of 20
Established Member

Re: Is zero balance good for score

My immediate goal is to just increase my score. Increase a few credit limits. Then just maintain high score

Message 10 of 20