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NWS1940

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Why should monthly balances auto-paid leaving a zero balance count against the credit scores?

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CC co's see 0 balance as a lack of need.

Helpful to 2 out of 2 people

if you can afford to pay off your whole balance every month then the credit card companies make no money off of you. Hence you are not a cash cow for them.   I know that is seems unreasonable but the truth is that they want to make money.  So a 0 balance or lack of use works against you. 

I worked with a loan officer (personal friend) when I was rebuilding my credit.  His advice was to pay almost all of the balance.  When your trying to build your score up, becuase your going to need a new loan in 6 months. try this: Say you have a balance due of $159.00, make a payment of 150.00, let the 9.00 ride to next month. This little trick can raise your score 50-100  points in 6 months.  

If you are not in the market for new credit, then of course paying the balance in full is the best way to manage your credit. and if you not looking for new credit,  a small drop in your score won't matter.  

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