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[quote=Anonymous][quote=Anonymous]The downside to carrying a zero balance is if you have a zero balance and have never carried any balance at all. Credit worthiness is demonstrated, in part, by showing an ability to pay back a loan (your cards are a loan, essentially). If you pay them in full every time, you never show you can carry and balance + interest (the loan part) and pay it off over time; you are essentially using the card as cash. But if you carried a balance for a bit and brought it to $0, you demonstrated credit worthiness; it sounds like you did this. You paid interest off, right?

You want to show creditors that you are capable of paying interest down. Not tons of interest, but a bit from time to time.

I'd also recommend asking for a higher credit limit on both cards. There's nothing wrong with having a higher limit (if you don't use it all). A bigger gap between your balance and the limit means better credit. So if you had a $2,000 limit with a $500 balance, that's better than a $1,000 limit with a $500 balance.

Hope that helps. [/quote]

PP here.

Your credit score will be FINE if you pay off each month. It will be fine if you never carry a balance + interest.

My comments were more pertaining to when you go get a loan for a house or car. They will absolutely be extending a loan to you with interest fees, so they will need to see you can pay back interest.

Sorry for the confusion on two different issues. This bit me in my early 20s when I applied for a loan and thought my credit was wonderful - it was, but I had not demonstrated that I could pay back a loan because I'd paid in full each time, so they did not offer me a loan. Now I know![/quote]

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