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For credit cards, is it best to have a zero balance? Or show some activity every month?

by m.parks198 from Maplewood, Wisconsin. Jun 24th 2016 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Typically, it's best to have carry a balance.. but try to keep the balance below 25% of your credit limit.. However, the new "Trend Data" type credit reports which just started here within the last few weeks, are supposed to give value to those who pay off their revolving debt every month.. I have not done a side by side comparison, but supposedly, your score should be higher.. Understand that if you are at 740 or above, then when it comes to mortgage rates, you will get the best rate available.. so even if your score improved to 840, the rate would be the same.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 NMLS# 226347

Jun 24th 2016
Larry Gray (lgray_312_247)
#593 ranked lender in California - 1,139 contributions

It seems that keeping open revolving charge accounts can boost your score whenbalances are kept fairly low compared to maximum allowable amounts. If you have just a couple of charge accounts with low balances (i.e. below 25% as William Acres stated) and one installment account such as for an automobile and a consistent record of paying all on time your score should be sufficiently high for most purposes of utilizing your credit scores. You do not want to have too manyaccounts but often people who have maybe 3 to 5 revolving charge accounts and keep them paid down to 0 along with a history of paying them off on time, have pretty high credit scores.

Jun 24th 2016
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