How revolving accounts (credit cards, department store credit cards, revolving lines of credit) are managed is heavily weighted in the FICO score. FICO scores evaluate revolving accounts in a variety of ways, including comparing balances to available credit, as well as looking at the number of accounts with a balance. A general rule to remember: Consistently carrying lower balances on revolving trade lines will generate positive points for a FICO score.   Carrying extremely high balances on all revolving accounts can make one look "maxed out" on available credit. It is often considered a high-risk trait by lenders and the FICO score.

The impact on the FICO score depends on how high the current balances are on revolving accounts. If high balances are carried, the impact will probably be minimal. The impact will be more noticeable if the balances are currently low or medium.

Bottom Line: Carrying very high balances on all revolving accounts can have a negative impact on a FICO score.

(Remember that even if credit cards are paid in full each month, the balance shown on a credit report may not be $0. Instead, it will reflect the account balance at the time the lender supplied the update to the credit reporting agency.)