Keeping a credit card active

[Anonymous]

I have learned through this website that many people use their credit cards on a rotating basis (like quarterly) to keep the account active, immediately PIF (either before or after a statement cuts depending on what overall Util % is), and then basically "sock drawer" the card until it is to be used again.

As you can see in my signature below, I am presently paying down CC debt...and anticipate having 1 card PIF by January 2010 (yay!)

Should I use the card again immediately after PIF the balance in January or should I not use the card until March-April 2010 for a small charge.  I don't want to lose the credit line on the card while I am paying down my other cards, because that would basically start to kill my overall util% for FICO purposes.

thanks!

[DI]

Congrats!  You don't want more than two cards to report a balance during any given month.  Also you want to keep the balance less than 10% of the overal credit card limit.  Personally I keep mines under 2%.  Good luck with paying those cards down. 

[haulingthescoreup]

jmkess, I'd go ahead and put a tank of gas or something similar on that card the same month that you pay it off, so that they don't think you're just going to pay it off and not use it again. I did this with my BofA card after paying off a BT. Just pay it as soon as it shows up online, so you can maintain that shiny $0 balance.

Congrats and good luck on your debt reduction!

[Anonymous]

So basically, I can use the card for a purchase...which will show that I have activity, but ideally, I should pay the balance of the card PRIOR to the statement cutting so I don't show a balance for FICO purposes, because I don't want more than 2 cards reporting a balance?

That seems easy enough, especially since I know that my Chase statement cuts on the 28th of the month.

This whole "get out of debt" kick kinda sucks at the moment, only because so many stores are presently having sales and everything...but now I know that shopping frivolously is what got me into this mess in the first place.  It's really hard to say no at times...but when I get those statements for my cards at the end of the month, and I've seen how much closer I'm getting to getting out of the hole, it's totally worth it.

I just keep reminding myself that in a few months...if I keep doing what I've been doing...I'll actually be able to AFFORD what I want to buy and not have to worry about paying for it later! 

Message Edited by jmkess on 09-30-2009 03:29 PM

[haulingthescoreup]

It's like being on a credit diet, isn't it?

Every time I drive by Krispy Kreme or the Macaroni Grill, I have to remind myself that they will still be in business when the time comes.

I hate deferred gratification...

But you'll see, you'll be on top of the world once you get rid of that debt.

[Anonymous]

It's totally like being on a credit diet...and unfortunately, I'm recovering from major credit bulimia...lots of major binging in years past.

I really appreciate all of the encouragement though!

I know that I still have a long way to go...but I've learned some really great things on this forum from people far wiser than I am, and I'm beginning to see a very faint light at the end of the tunnel.