How To Get A $0 Balance On Your Credit Report


You need a loan and you want the best interest rate possible. You know that a high credit score paves the way for the best interest rate offers – but did you know that your credit card balances contribute to one of the five factors used to calculate your credit score?

Your credit utilization, defined as the amount of credit you use compared to your credit limit, is one of the largest components of your credit score. When your credit balance is zeroed out, your credit utilization at that moment becomes zero as well. Creditors can see that you have managed your debts well and are capable of handling new debt.

Unfortunately, you probably aren’t going to show a $0 balance even if you pay all your bills on time as soon as your billing statement is available. The amount reported to the credit reporting agencies is the balance on your billing statement on the reporti…

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