02-24-2009 02:47 PM
First the basic details.
I have one credit card. It has a $2000 limit.
I use the credit card for almost all of my monthly purchases and bills except for car payments, auto insurance, rent, and utilities.
Is it smart to use it up to near the limit every month if I pay it off before the payments are even due? I get a reward point for every dollar spent with the card and then paid.
Should I request a higher limit so that I am not near the limit once a month, or does it matter?
02-24-2009 02:51 PM
02-24-2009 03:22 PM
Hello thomas, welcome to the forums!
I agree with Hauling. You can rack up some serious cash back when you use a CC as your debit card (assuming PIF of course).
To answer your question, using up to the limit doesn't really matter for scoring purposes UNLESS you accidentally forget to PIF by the time they report the balance to the CRAs (usually around the time the statement cuts). If you were to let a $1900 balance report on your $2000, you would probably get dinged quite a few points until it reports a lower balance.
02-24-2009 09:18 PM
02-25-2009 03:44 PM
This is the first of the two permissible purposes I've established for using CC's in our household. The second was for 0% BT offers to help finance our Son's adoption. If you're not in the market for credit (I'm not) don't worry about the affect on your scores, just take advantage of the money back. If you are worried about your scores, pay most or all of the balance a few days before the statement cuts and it won't hurt you at all.
02-27-2009 06:46 AM
I have the card through USAA. I have had it for about two years now. I initially had a $500 limit.
If it is any value to anyone, USAA is awesome for my credit card, banking, and setting up my IRA. I don't know what their rules are as far as nonmilitary people, but I highly recommend them
02-27-2009 11:59 AM
02-27-2009 02:54 PM
What the heck is a 'luv' button?
I'm all about USAA (ins, car loan, cc, ckg) but I don't think I ever saw a 'luv' button.
Man, does this mean they weren't showing me the luv?
02-27-2009 03:12 PM
02-27-2009 03:45 PM
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.