columbia wrote:I just looked at Credit Karma and saw this line item grade:
Open Credit Utilization: 0%
I'd love to know the rationale for that.
It's pretty common knowledge. You actually have a better score if you are using revolving debt than if you have a zero balance. Credit scores basically don't count cards towards credit utilization if you aren't utilizing them. It still counts as an open account.
Not sure what your situation is, but if it's concerning for you at all, the easiest fix is to just put a tank of gas on the card once a month then pay it off at the end of the month. Then go back out and fill up the car again. No interest payments b/c you are paying off within 30 days, and the chances of your credit score being pulled at $0 is pretty slim.
In all honesty, I wouldn't worry about it.
Another, more anger inducing, reason is that you technically aren't using revolving credit properly if you leave it at $0. It's meant to be used and paid down/off. By leaving it at zero, you are misusing it
If you have a solid history, this is likely making little to no impact on your score. If you need to refi a mortgage, just to buy dinner on your card a month or so before and leave the balance so it props the few extra points up