Credit Cards Center Credit cards from our partners
Reply
Regular Contributor
Posts: 126
Registered: ‎07-22-2012
0

How much do you need to use a credit card to maintain your credit limit?

[ Edited ]

I recently came across an article on bankrate.com which stated:

 

"Use credit cards you don't want to lose 


Though the Credit CARD Act banned issuers from charging inactivity fees, nothing prevents an issuer from shutting down an unprofitable account or reducing the credit limit. As our 2010 study of credit card fees shows, a number of card issuers close accounts if they go unused for too long.

While there are no guaranteed ways of preventing an unwanted shutdown, it's smart to regularly use credit cards you want to keep. Pay in full to stay out of debt.


Source: 10 credit card tips for 2011 http://www.bankrate.com/finance/credit-cards/10-credit-card-tips-for-2011-1.aspx#ixzz23lLpgmwp"

 

My questions are:

  1. How much do you need to spend on a credit card to maintain your given limit? Let's say you have a 35k limit. Can you only use $50 per month to maintain the CL?
  2. How often do peoples' credit limits get reduced/shutdown, and by how much?
  3. Do lenders usually give you a notice before they decrease your CL or close your entire account? Do they usually offer corrective actions you can take to prevent the CL decrease/shutdown?

 

Jun 2012 FICO® ~ 734 EQ
Sep 2012 FICO® ~ 684 EQ; 734 TU
Oct 2012 FICO® ~ TBA

Goal for 2014 ~760+

Trying to stay in the garden...but also trying to get as many apps as possible for now Smiley Wink
Valued Contributor
Posts: 2,708
Registered: ‎10-16-2008
0

Re: How much do you need to use a credit card to maintain your credit limit?

Looking at your scores, I wouldn't worry about any of that too much.

 

Buy a pack of gum or something once in a while on a card you haven't used.  That will usually keep them (the ccc) from closing your account.

 

The only reason to keep an account open (if you are not using it) is for scoring.  If you need a higher score for the important things (like a mortgage), then by all means, stroke that ccc a bit by using their card.

 

If you don't need 'em, don't worry about them at all.

 

All they do is lend money.  Nothing more, nothing less. 

 

Answers to your questions are 1) Yes, or less.  2) Often, mostly for non-payment or highly increased utilization across all accounts or the one account.  3) No.

 

Hope this helps.

Valued Contributor
Posts: 2,489
Registered: ‎01-22-2012
0

Re: How much do you need to use a credit card to maintain your credit limit?


SportBike4Life wrote:

I recently came across an article on bankrate.com which stated:

 

"Use credit cards you don't want to lose 


Though the Credit CARD Act banned issuers from charging inactivity fees, nothing prevents an issuer from shutting down an unprofitable account or reducing the credit limit. As our 2010 study of credit card fees shows, a number of card issuers close accounts if they go unused for too long.

While there are no guaranteed ways of preventing an unwanted shutdown, it's smart to regularly use credit cards you want to keep. Pay in full to stay out of debt.


Source: 10 credit card tips for 2011 http://www.bankrate.com/finance/credit-cards/10-credit-card-tips-for-2011-1.aspx#ixzz23lLpgmwp"

 

My questions are:

  1. How much do you need to spend on a credit card to maintain your given limit? Let's say you have a 35k limit. Can you only use $50 per month to maintain the CL?
  2. How often do peoples' credit limits get reduced/shutdown, and by how much?
  3. Do lenders usually give you a notice before they decrease your CL or close your entire account? Do they usually offer corrective actions you can take to prevent the CL decrease/shutdown?

 


I rarely use my BofA cards and they haven't AAed or CLDed me yet. I just put 1-2 automatic billing payments through for $15-20 per month and it seems to work for them. Other people have reported that they've been CLDed for similar spending patterns, but it hasn't happened to me yet.

 

EX 798, EQ 789, TU 784
American Express Platinum (NPSL) || Bank of America Privileges with Travel Rewards Visa Signature - $23,200 CL
Barclays American Airlines Aviator Red World Elite Mastercard - $20,000 CL || Chase IHG Rewards World Mastercard - $25,000 CL
Chase Sapphire Preferred Visa Signature - $12,700 CL || Chase United MileagePlus Club World Elite MasterCard - $26,500 CL
Citibank Hilton Reserve Visa Signature - $20,000 CL || J.P. Morgan Ritz Carlton Visa Signature - $23,500 CL
Regular Contributor
Posts: 126
Registered: ‎07-22-2012
0

Re: How much do you need to use a credit card to maintain your credit limit?

I know CLD means 'credit limit decrease' but what is AA'ed?

Jun 2012 FICO® ~ 734 EQ
Sep 2012 FICO® ~ 684 EQ; 734 TU
Oct 2012 FICO® ~ TBA

Goal for 2014 ~760+

Trying to stay in the garden...but also trying to get as many apps as possible for now Smiley Wink
Highlighted
Valued Contributor
Posts: 2,489
Registered: ‎01-22-2012
0

Re: How much do you need to use a credit card to maintain your credit limit?


SportBike4Life wrote:

I know CLD means 'credit limit decrease' but what is AA'ed?


AA = Adverse Action. Basically it's something negative the bank does to you, usually because you triggered something in their system and now seem risker. It could include:

 

* CLD

* Increasing your APR

* Putting a hard limit on a charge card

* Closing your account outright

EX 798, EQ 789, TU 784
American Express Platinum (NPSL) || Bank of America Privileges with Travel Rewards Visa Signature - $23,200 CL
Barclays American Airlines Aviator Red World Elite Mastercard - $20,000 CL || Chase IHG Rewards World Mastercard - $25,000 CL
Chase Sapphire Preferred Visa Signature - $12,700 CL || Chase United MileagePlus Club World Elite MasterCard - $26,500 CL
Citibank Hilton Reserve Visa Signature - $20,000 CL || J.P. Morgan Ritz Carlton Visa Signature - $23,500 CL

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.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

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.