Quote:
Originally posted by jujueye
This fascinates me, and I have heard it before, but I still don't understand how leaving a balance on a card is better than paying it off and having a zero balance. When I have applied for mortgages, or when I was out shopping for them, i would pay off major cards prior to meeting with the lender, and my credit scores seemed good. Could you explain?
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I believe it goes something like:
A card with 0% balance could be a card you haven't used for 7 years, and in fact has been cut up. You might not even be aware it is open.
A card with a 1% balance is a card you are using, and have the self control to not max out.
IANALO. ;-)