Are there any penalties for carrying a zero-balance on a credit card?

Question

I'm finally about to pay off my credit card, hurray! But, I would like to keep the account open to help my credit score or in case of emergencies.

Do credit cards raise interest or cancel accounts if you go for too long without a balance?

Thanks!

Answer 1

Way to go congratulations, yes keep the account open use it for a small purchase every so often, and then pay if off before the due date, you credit will rise quickly

Answer 2

Great question,, The obvious answer would be no,, BUT you need to read your fine print.
There are so many crazy agreements.

You should know that when you pay it off, you still may owe interest the following month, even if you have a zero balance, due to what they call a two cycle balance.

You may need to not use the card at all for a month or more to get out of this trap. Call customer service and have them explain your particular card. There are many different terms.

Keep the card open.. It will reflect positively on your credit report.

Answer 3

I don't believe so...but I've heard it's a good idea to charge gas or something once a month or so and pay it off just to keep your credit score active.


oh and congratulations!!!!