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Question By
kula11

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0 People Helped
Credit utilizations shows 0% and lowering credit score
Hi There,

My problem seems to be peculiar. I have couple of cards. I am using one actively as other being store card. I have paid my full amount before even before billing life cycle.
When statement arrived, it showed 0 balance as I have already paid. Card reported 17% of utilization which fine. Another report was sent before next billing life cycle. This time it says 0% utilization which is lowering my score.

My queries:
1. Am I doing wrong paying before billing cycle ?. show I do that in grace period ?
2. Why it shows 0% utilization ?. Will that depends on number of times credit card company reports credit union.
My credit card company reports 2 times.

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Unfortunately when you card reports a 0% utilization than your scores will drop.  You need to show a small balance normally not surpassing 30% of your limit to get the best scores out if it.  In other words it's best to show you’re able to maintain a small balance throughout the life of the card.  Usually once you go over 30% than your scores will drop as the utilization increases.  You don't want to completely pay off the full balance before the billing cycle because of the possibly of it showing 0% utilization.  If you show 0% utilization, than aren’t considered a good barrower.  I've seen that keeping a dollar compare to zero makes a big difference.  Hope this helps.

Regards.

Regards.

Reply by
kula11

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Thanks mart!!.

I am planning to pay in grace period which should be fine.

Yes I am keeping at 30%.

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