Earlier this month, I paid down my credit card (Discover) before the statement date so I'd only have a $1 balance on my statement. I did this to keep my utilization low, as I'm trying to build my credit.
I look at my account today to check my statement and pay the $1, but there was a $0 balance and I owed nothing. On my credit statement, it says the $1 was waived as a "small balance credit." So, yay I get a free dollar, but now my record shows 0% utilization for this month. I'm planning on applying for my 2nd credit card soon (after my credit history is 1 year old), so I'm mildly worried about how a non-utilization month will affect my chances of approval for my card of choice (Chase Freedom).
Is this "small credit balance" actually a thing? Will this happen everytime I leave a small balance? Why does this happen?
Submitted December 05, 2018 at 10:05AM by dattonkatsudoe https://ift.tt/2RBtDY3