<prompt> Human: I understand why a 0 utilization can be a red flag. Per the CK FAQ...This is likely because people with 0 credit card utilization usually fall into two categories:1 They dont have a credit card because they have poor credit. Having a credit card and different types of credit help demonstrate credit worthiness in the eyes of lenders and credit scoring algorithms2 They dont use their credit cards at all. This is the reason why credit score tips usually suggest you use your credit cards, if only on small purchases, to show an active credit profile with positive payment history.The issue is that I dont fall into either of these categories. I use my credit card as my primary method for making purchases both for cash back, and consumer protection. I usually end up with 1-2k of purchases on a monthly basis. However, I generally pay off the balance by my statement date since I dont want to incur finance charges.I see that a 0 utilization gives me a C on my credit report card, whereas 1-20 would give me an A. Does this really have a negative effect on my rating?  <response>: If you wait until your statement is issued and then pay the balance, your utilization ratio is not 0.In the larger picture, it really doesnt matter that much. The most important thing is to pay off your balance in full every month to avoid the high interest rates that credit cards have. If you do this, a good score will follow. 