Utilization at 0%

[Jdman]

I finally have my credit utilization at 0% after paying off all my credit cards. Will my score go up every month I keep my utilization at 0% or will it stay where it is? I have 2 auto loans, 2 installment loans and 6 credit cards(3 mine and 3 AU). I have 1 or 2 medical collections. 

[Anonymous]

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@Jdman wrote:

I finally have my credit utilization at 0% after paying off all my credit cards. Will my score go up every month I keep my utilization at 0% or will it stay where it is? I have 2 auto loans, 2 installment loans and 6 credit cards(3 mine and 3 AU). I have 1 or 2 medical collections. 

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If you have your revolving utilization at 0, you would be losing points.

[Anonymous]

As they say: utilization has no memory

AZEO scores a few more points than all zero revolving balances

Aging and aggregate installment utilization is probably the most effective way to increase your score from here, aside from scrubbing those collections off

[Anonymous]

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@Jdman wrote:

I finally have my credit utilization at 0% after paying off all my credit cards. Will my score go up every month I keep my utilization at 0% or will it stay where it is? I have 2 auto loans, 2 installment loans and 6 credit cards(3 mine and 3 AU). I have 1 or 2 medical collections. 

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For optimal Fico scoring, you'd want one revolver reporting a small balance (that you pay in full right after statement cuts or before your due date). I don't really understand why, but Fico penalizes those who pay everything to zero and they report as zero. If you're doing the AZEO technique, the rule is let All report Zero Except One. 

[Gmood1]

1 to 9% reporting monthly is ideal.

If nothings reporting on your cards.

Your scores will decrease not go up.

Use your cards, just pay the statement balance monthly. So not to incur interest charges.

My utilization is reporting 0% right now. Though 9 or 10 CCs have a balance reporting. My situation is different from yours. Because my overall credit limit is so high. 

I'd have to report over a certain amount used before the system recognizes I'm using 1%.

[Ontherise2020]

I recently paid off all my credit cards as well and having a current 2% utilization (should be 1% next month when some payments clear with Credi bureaus).  This definitely help me in my scores.  

[K-in-Boston]

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@Anonymous wrote:

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...I don't really understand why, but Fico penalizes those who pay everything to zero and they report as zero...

Someone who is currently showing that they can responsibly manage revolving credit is at a lower risk of mismanaging those accounts than someone who is not using their revolving credit lines at all.

[SouthJamaica]

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@Jdman wrote:

I finally have my credit utilization at 0% after paying off all my credit cards. Will my score go up every month I keep my utilization at 0% or will it stay where it is? I have 2 auto loans, 2 installment loans and 6 credit cards(3 mine and 3 AU). I have 1 or 2 medical collections. 

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Be careful. Make sure at least one card reports a small balance each month before you pay it off. Otherwise you'll get FICO 8's famous "all zero" penalty.

[Anonymous]

I'm not sure AZEO produces any real benefit at all with strong profiles. Once you get to that point, there is no point in caring about reporting that way. 

[Anonymous]

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@Anonymous wrote:

I'm not sure AZEO produces any real benefit at all with strong profiles. Once you get to that point, there is no point in caring about reporting that way. 

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Have you tried it?