Does A Zero Balance Affect Your Credit Score?

Updated: May 13, 2018

Your balance definitely affects your credit score, as the amount of your debt balances makes up 30 percent of your credit score. Having large balances affects your credit utilization - the ratio of our credit card balance to your credit limit.

Zero balances won't affect your credit score, unless you have a zero balance from not using the card. As credit card issuers can close the credit card or stop sending credit reports, which can affect your score.

Zero Balance and Your Credit Report

Your credit card details are reported at various times throughout the month (usually on the account statement closing date. This mens it could be reported on a day that your credit card balance is not $0. For example, if you make a purchase $50 on the 1st of the month and pay it in full on the 15th of the month, but your credit report was updated on the 10th, your credit report won't show a $0 balance.

Unless your balance is always zero, your credit report will probably show balance.

Keeping your balance at 30% of the credit limit is the best option.

Getting the Balance You Want to Report

Pay your credit card balances down and don’t make any additional purchases for a few weeks if you are trying to have your ideal balance and score reflect for a certain date or purchase.

Disclaimer: The content on this site is provided for information and discussion purposes only. It is not intended to be professional financial advice and should not be the sole basis for your investment, financial or tax planning decisions. Under no circumstances does this information represent a recommendation to buy or sell securities, or any other products, or services. All content and information is subject to change at anytime.


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