CC advice

[Anonymous]

I was told by Experian that my credit rating suffers as I don't have a revolving account. I thought that my green AMEX was but I found out it didn't fit the characteristics of a true revolving account. Even Amex lowered my "limit" noting the Experian report as a factor in their decision. So I accepted a BOA Platinum CC ($4,000 limit)  4 months ago but I have yet to use it. How should I best use it. I'm at a 689 EQFax and I need to hit that 700 mark to get a good rate on a home I want to purchase in February.

[WannaHouse]

I am not an expert, but from what I have learned here, you should use it when you make purchases, and then pay in full right before the statement cuts. Check your statement for the last billing day and pay it off about 2 days before it cuts.

I am not sure that will give you the kind of boost you need though. You may need to try to get a small loan from a local bank or CC and pay if off about 3 months before you apply for a mortgage? (okay I missed the part that you want to apply in Feb. Disregard this one!!)

Message Edited by WannaHouse on 11-22-2008 09:23 AM

[Anonymous]

Use your BoA card and let a small balance report so you can get the boost for showing use of a credit card. You have a 4k CL so keep it under 400 and you should be fine. If you don't want to use that much, that is ok too. Just so long as it reports something.

The Green is a charge card not a revolver, so it's scored differently.

[manyquestions]

Yeah, let something report, even if it is $10.  My revolving cards all had zero balance, I let about $20 report on one card and got a FICO boost of 7 points.  Scorewatch said the increase was due to a credit card showing a balance.  The problem you might have that could negate the increase is if you get a small ding for 100% of cards reporting a balance (1 of 1).  That's why it is good to have three revolving cards, you can have one report a balance and you only have 33% of your cards reporting a balance.