Positive balance vs credit score

Johnny_WL

Hi MSE people - interested in your thoughts on this ...

Will leaving a positive balance in credit card accounts affect credit scores?
I may have heard that, counter intuitively it can actually count negatively for your credit score.

Can anyone confirm this? I'm a little bit miffed that my Experian Credit score has dropped from 999 to 930* recently (all my credit cards get paid off in full every month - and I also leave a zero balance). If I was to arrange some positive balances for some of the cards is this likely to raise my score again?

* The only two changes I've made to finances recently are an energy switch and a TV/Broadband switch but I don't think this should affect my credit score as much as other possible transactions.

Appreciation for your input in advance. Thanks. Johnny

[Deleted User]

It's not about credit scores. They're fictional and have no meaning.

It's about breaching the terms of your card . Don't deliberately put your card into credit.

PeacefulWaters

Your credit score is something akin to a random number used by an organisation that doesn't lend money to consumers.

However, most credit cards have a condition that prohibits you from placing an account in credit.

Most lenders like evidence of good payment history on a credit file. The best way to use a credit card is to spend on it, get a statement, clear the balance fully, never pay interest, rinse and repeat every month.

adindas

Johnny_WL wrote: »

If I was to arrange some positive balances for some of the cards is this likely to raise my score again?

Thanks. Johnny

Nope it might even go against your credit worthiness if your in credit balance is relatively high.

Do not get too obsess with your credit score

dresdendave

adindas wrote: »

Do not get too obsess with your credit score

Even better, ignore it altogether.

Johnny_WL

Appreciate all your thoughts - thanks Johnny

Anthorn

Johnny_WL wrote: »

Hi MSE people - interested in your thoughts on this ...

Will leaving a positive balance in credit card accounts affect credit scores?
I may have heard that, counter intuitively it can actually count negatively for your credit score.

Can anyone confirm this? I'm a little bit miffed that my Experian Credit score has dropped from 999 to 930* recently (all my credit cards get paid off in full every month - and I also leave a zero balance). If I was to arrange some positive balances for some of the cards is this likely to raise my score again?

* The only two changes I've made to finances recently are an energy switch and a TV/Broadband switch but I don't think this should affect my credit score as much as other possible transactions.

Appreciation for your input in advance. Thanks. Johnny

There are some programs, apps and people who regard a credit card positive balance as you call it, a negative balance because it's money owed but that's another story.

Having a balance on a credit card provided the limit is not exceeded shouldn't make any difference to a credit score. It's the credit limit that affects it, according to Clearscore the bigger the better. However having a balance from month to month will contribute to your financial profile by creating a pattern which will interest lenders.

LuSiVe

Anthorn wrote: »

There are some programs, apps and people who regard a credit card positive balance as you call it, a negative balance because it's money owed but that's another story.

Having a balance on a credit card provided the limit is not exceeded shouldn't make any difference to a credit score. It's the credit limit that affects it, according to Clearscore the bigger the better. However having a balance from month to month will contribute to your financial profile by creating a pattern which will interest lenders.

Surely he doesn't mean that, he means overpaying so the card company owe *him* money. Which is, as already said, a pointless bad idea.

Anthorn

LuSiVe wrote: »

Surely he doesn't mean that, he means overpaying so the card company owe *him* money. Which is, as already said, a pointless bad idea.

I don't know because I'm not able to read minds. I use the terms credit balance and debit balance.

In the case of overpaying a credit card to create a credit balance I should think that a fraud investigation will follow!

molerat

Johnny_WL wrote: »

............
* The only two changes I've made to finances recently are an energy switch and a TV/Broadband switch but I don't think this should affect my credit score as much as other possible transactions.
.......................

Both of those may have had a credit search which can lower your score and they may be reported as new accounts which again may lower your score. If applying for new "proper" credit these would be seen by the lender as what they actually were and dismissed as not relevant to the type of credit you are applying for. Your made up score is therefore meaningless. Keep on paying off your card monthly. Both myself and MrsM opened several current accounts in a short period and our scores went down but that didn't stop me from obtaining some new credit cards shortly after.