Being debt free is a great feeling!  However, if you don’t have any credit card balances and your credit profile stays this way for a couple billing cycles your credit score could drop.

Here’s why:

• Credit score cards need some sort of history to rank you.  If you don’t have a balance you don’t have activity.  If you don’t have activity you don’t have history.
• Every score card has different requirements on how many active tradelines or accounts they need to score you.  Generally, you need 3 positive and active accounts to get a score.