- Centurion Member
- Posts: 4042
- Joined: Thu May 08, 2014 7:42 pm
- Location: United States
I realize this topic might be answerable only by a FICO employee, but figure someone here might have read something authoritative and recent on the topic.
Many of us have heard that for ideal FICO scoring, it is best to have between 1% and 10% of your credit limit report to the credit bureaus (and then pay it off during the grace period to avoid interest). It is also important, we hear, to only let one card report with a balance and pay the others off in full before the statement date.
I was wondering:
Is it considered bad for a FICO to have less than 1% report but more than $0? A $1 balance on a $5,000 card is less than a full 1% but it still reports to the bureaus that you're using it.
Is there some reason that multiple cards with tiny balances are considered bad? If I was a lender, I'd rather see two cards reporting showing $20 balances than one card reporting showing 10% of a high credit limit.
Very useful: SchwabPlat, CSP, IHG, Costco (was AA Plat), Freedom, SPG
Somewhat useful: Discover, ED (was EDP), BCE, Hyatt, Arrival
May close or PC: Prestige, BrooksBros
Might add: Proper business card, CSR, Ritz, Delta Gold, First Tech