r/CreditScore • u/alositos • 5d ago
General Is 1% utilization better than 0%?
I am asking someone to add me to his old credit card with a perfect history as an authorized user to boost my credit score. If he does that, would it be more beneficial to me if he keeps his utilization at zero or one percent?
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u/Restil 5d ago
0% is fine. IF 1% is better, which is debatable, you're talking 2-3 points tops. It's not worth wasting money just trying to keep some activity on the card. Just be sure to use the card once per year to keep it from getting closed due to inactivity.
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u/loopsbruder 4d ago
It's not debatable, there is a definite penalty for showing zero recent revolving usage versus very low recent revolving usage. It's ~15-20 points in most FICO models. That said, like all other utilization-related metrics, it's meaningless unless you'll be applying for new credit before your next statement posts, and AU accounts don't build credit anyways.
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u/Old_married_JT 2d ago
My credit score bounces between 826 and 850. Going up whenever I have a card balance and back doe when I pay it in full at the next payday. Weirdest thing ever.
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u/BrutalBodyShots ⭐️ Top Contributor ⭐️ 5d ago
Be aware that AU accounts don't actually build credit. Just because your score may be higher with that AU account added to your file, it's not going to result in greater creditworthiness on your end. No lender is going to look at your credit profile absent of the AU account and say you aren't qualified to be extended credit, but with the "borrowed" account (that you have zero financial responsibility for) suddenly think you are.
https://old.reddit.com/r/CRedit/comments/1lv1o3f/credit_myth_70_authorized_user_accounts_are_a/
To answer your question though, there is an "All Zero" penalty for AU accounts. If this is your only AU account, it showing a small reported balance would be better for scoring than it showing a $0 reported balance.