Is 0% Utilization Bad For Your Credit Score?

Welcome to my MissBeHelpful channel!

In this video I address 2 important things to consider when thinking about utilization, and specifically 0% utilization. Watch to find out if you're helping or hurting your score when you have a zero balance on your credit card!

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’Til next time… PEACE!

[youtuber]

I paid off all my bills and my score went to 752 but then i didn’t use any of my cards with a limit of 16k and it drop 60 points. So recently I’ve been using my card and it went back up to 779 currently. The algorithm for credit card is tricky, it’s good that you use your card and pay off bills but you have to constantly do it and use a good amount of your limit. Basically you have to a good amount of side money to keep your score up

[kj]

I keep my utilization at 2%. I believe in the U.S. the top tier credit individuals stay between 2% and 7% utilization

[tkunzy]

I just got my first credit card to build my credit so I can buy a sick car I want. I thought using the card almost to the max then paying it off would be the most beneficial to building my credit score. Glad I went online to check out what to do. Was at about 420 of the 500 limit before my first statement. Made a payment on it to leave 40 bucks on it to say below that 9% utilization. Thanks!

[XYz-yxnq]

This is it folks!! Below 6% the credit bureau let you know how fantastic you are. Also 1% is the ideal secret sauce.

[HonestFinance]

Great videos. New subscriber here. Utilization is real. My score has jumped up 50 points in 2 months because of keeping utilization low before statements ended. I have had $0 balance recorded in the past and haven’t noticed much change. Thank you for your videos. I’m into finance too, just haven’t touched on credit cards much.

[stevenmiller]

There are some misunderstandings here. If you wait until you get your bill and pay by your due date you won't pay any interest but you will have credit utilization. The only way to have 0% credit utilization if you use your card is to pay it off before the statement closing date. Once you get your bill it's too late to have 0 utilization. I have 19 credit cards. Use them all, always pay before the statement closing date, always have 0 utilization and always get credit for using my cards. If you can, that is the perfect way to use credit cards. Many people debate is it better to have 0% utilization or 1% and the difference isn't much but 0% is better as long as you are using your cards.

[chrissiology]

I had a 738 and had a 0% and didn’t use it for ONE month, I found it ridiculous how my score dropped 23 scores down!

[aeromedical]

So let me get this straight, I don’t use credit cards and therefore don’t have cc debt, and I am treated as a credit risk. If I have zero debt, why in the world would a bank not want to lend me money. I am far more likely to be able to pay off a loan if I’m not strapped down with other debt than if I have a bunch of payments because i love using credit cards. Makes no sense to me.

[DitsyMe]

I have 2 cards from capital one. I only use them to purchase stuff under $5 like a 1 gallon water or a energy drink lol.

[junitolopez]

Another important point people miss. If you have a bad payment history, in order to get to 💯% good history. You need monthly, positive information, as well as more credit cards to increase your positive payment info.

[madcyborg]

If You can.... avoid consumer debt.... steer clear.... just PAY Miles and perks cost more than if You paid for a plane ticket or perk outright.

[jyorhangreene]

Look anything below 30% you’re safe . Once i m within those lines I’m good. Because even if u keep it at 10% it’s not like they are going to give u 50 points off the bat.

[Dheerajkumar-gxty]

Credit history is frm tht one card wch u started using fr the first time, do whatever u want but never to close tht particular card, even wn u have to pay the joining fess.
Close wch ever u want but not tht one card...
She is bulls eye :- right (frm India wit lots of respect fr u)

[GiveMeLibertyOrGiveMeDeath]

%0 utilization is a sure fire way to get either your credit limit lowered or your card closed altogether.

[moemoe]

The reason for this people will pay the total bill by due date to avoid interest. Example: make a purchase right after it is paid on due date (within 2 days later) and whatever you purchase that's the percentage that will be reported to the credit bureau because you may have made that next purchase before the statement date. The statement date gets reported to the credit bureau.
My due date is 6 th of each month - I pay my bill in full to avoid interest
My statement date 12th of each month
If I make another purchase before the 12th that utilization gets reported to the credit bureau 💳
If I pay the next purchase off before the 12th it will be reported as 0 utilization
I hope this will help anyone who read this comment!

[franklinmartin]

Are you sure you’re not tired? You’ve been running through my mind all day.

[redshimmy]

Another wonderful video from you. Keep shining on your light to this world sweetie

[jayspov]

I payed my accounts in full by the due date and my score dropped by 20 points.

Mad af right now.

[odinswar]

It's always good to show at least $1 on the card n show utilization

[MJ-nupg]

2nd time I was looking for credit card Info and found one of your videos. Very helpful 🙏🏾