The problem is if you have no balance, if you leave your credit card with no balance, you’ll have no payment history. You’ll want to leave a little bit of balance on your credit card every month (Ideal amount is 1%), to show that you can pay on time. Don’t just pay off a balance and leave it at zero balance account ongoing, because after six months it’s typically at as an inactive account, which give you really no major positive. Where, if you use the account every few months, and leave a very small balance on it, then it will help you. The way FICO looks at it, if you have no balance, they don’t know whether or not you can pay it, because you’re not getting a bill. You have no obligation to pay. So that’s a strong part of it, and so you should always keep a very, very small balance, as small as you possibly can, is what you’re advising your consumers to keep on their credit cards.
