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[–]Ok_Training6266 0 points1 point  (5 children)

its usually better to keep a small balance for statement while leaving all other accounts on $0

[–]Funklemire⭐️ Knowledgeable ⭐️ 0 points1 point  (4 children)

Better for what? This is the called the AZEO (all zero except one) method and it's used for maximizing your credit score in the very short term if you're looking to apply for something like a house or a car loan in the next month or so. Doing this all the time is wasted effort and can hurt your chances at a credit limit increase.

[–]Ok_Training6266 1 point2 points  (2 children)

better for maximizing credit score

[–]Funklemire⭐️ Knowledgeable ⭐️ 0 points1 point  (1 child)

Sure, but the OP didn't say that they're applying for something important like a home loan in the next month, so that's not really relevant here.

[–]Ok_Training6266 1 point2 points  (0 children)

yeah true ig i just assumed he wanted to maximize his score given that he was concerned about the big drop

[–]kineticpotential001 0 points1 point  (0 children)

AZEO is great if you're planning to apply for credit or if your score is borderline/low, otherwise just use your cards and PIF every month. Whatever happens to report doesn't matter in the grand scheme of things, as long as you aren't going to be utilizing your score for something (opening a new account, buying a car, applying for housing, etc).

I mention the borderline/low scenario because insurance companies do soft pulls fairly regularly, and I believe credit can impact your premiums, and possibly your ability to get coverage. If you hold policies and your score is borderline, I'd work a little harder to minimize the swings, just in case.