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My rules for using credit cards.....

Member

My rules for using credit cards.....

  1. Never apply for or continue to renew a credit card that has an annual fee.   Never pay for credit.
  2. Never charge what you cannot payoff completely before your closing date.   Always bill out at a zero balance.
  3. Go two years without applying for credit and remove all inquiries from your bureaus.  It is possible.
  4. Never close accounts with balances.
  5. Your goal should be to keep enough cards open to reach 50k in available revolving credit (with zero balances.)
  6. Live beneath your means, not within your means or above your means.

Anybody have any other good ones?

TW=825, CB=819, TU=946
Message 1 of 57
56 REPLIES
Valued Contributor

Re: My rules for using credit cards.....

Mine is YMMV when it comes to using credit cards as you'll go through numerous phases of credit usage. 

FICO Scores Updated 07/15 EQ08 748 EX08 748 TU08 818
Message 2 of 57
Frequent Contributor

Re: My rules for using credit cards.....

 


annalog wrote:
  1. Never apply for or continue to renew a credit card that has an annual fee.   Never pay for credit.
  2. Never charge what you cannot payoff completely before your closing date.   Always bill out at a zero balance.
  3. Go two years without applying for credit and remove all inquiries from your bureaus.  It is possible.
  4. Never close accounts with balances.
  5. Your goal should be to keep enough cards open to reach 50k in available revolving credit (with zero balances.)
  6. Live beneath your means, not within your means or above your means.

Anybody have any other good ones?


+99agreed, except with #2 my scores don't move if I keep a zero balance.

 

7. Building credit is a marathon, not a sprint.

8. No spree is beneficial (shopping sprees, app sprees, etc.)

Wallet: Fidelity Investment Rewards | BOA Travel Rewards | Chase Sapphire Preferred | Discover More
Message 3 of 57
Moderator Emerita

Re: My rules for using credit cards.....

 


aamex wrote:

annalog wrote:
  1. Never apply for or continue to renew a credit card that has an annual fee.   Never pay for credit.
  2. Never charge what you cannot payoff completely before your closing date.   Always bill out at a zero balance.
  3. Go two years without applying for credit and remove all inquiries from your bureaus.  It is possible.
  4. Never close accounts with balances.
  5. Your goal should be to keep enough cards open to reach 50k in available revolving credit (with zero balances.)
  6. Live beneath your means, not within your means or above your means.

Anybody have any other good ones?


+99agreed, except with #2 my scores don't move if I keep a zero balance.

 

7. Building credit is a marathon, not a sprint.

8. No spree is beneficial (shopping sprees, app sprees, etc.)


 

Agreed, although with a minor quibble on #1: only pay a fee if you'll still come out ahead due to the rewards. Do the math!

 

--says the new owner of a Blue Cash Preferred! Smiley Very Happy

 

But I did do the math, and I'll still come out ahead; net rewards ~ 4.25%.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 4 of 57
Valued Contributor

Re: My rules for using credit cards.....

Those are some tough, tough rules to live by when it comes to CCs.......

But that's what it takes to achieve the high fico scoring......

Also....

Never, ever, be late on payments !!

 

The #3 is my favorite one = go 2yrs without inquiries....

Just be careful with utilities companies...they do hard pulls all the time.

 

#1 is correcto....never pay for AF. I stay away from those cards. Esp., AX cards...they are loaded with AF.

 

I will memorized these rules.....Smiley Wink

Message 5 of 57
Super Contributor

Re: My rules for using credit cards.....

 


annalog wrote:
  1. Never apply for or continue to renew a credit card that has an annual fee.   Never pay for credit.  Check
  2. Never charge what you cannot payoff completely before your closing date.   Always bill out at a zero balance. Check
  3. Go two years without applying for credit and remove all inquiries from your bureaus.  It is possible.  Check
  4. Never close accounts with balances. Check
  5. Your goal should be to keep enough cards open to reach 50k in available revolving credit (with zero balances.)  Check
  6. Live beneath your means, not within your means or above your means.  Check

Anybody have any other good ones?


I love your rules!!

 

Message 6 of 57
Super Contributor

Re: My rules for using credit cards.....

I like you rules so much, I posted an edited version of it on my facebook page. 

Message 7 of 57
Established Contributor

Re: My rules for using credit cards.....

I agree with HTSU.

 

I was always against annual fees, but I'm going to PC to the Blue Cash Preferred card. I can nearly double my rewards compared to Blue Cash (which I got 2.01% last year).

Message 8 of 57
Senior Contributor

Re: My rules for using credit cards.....

 


annalog wrote:
  1. Never apply for or continue to renew a credit card that has an annual fee.   Never pay for credit.
  2. Never charge what you cannot payoff completely before your closing date.   Always bill out at a zero balance.
  3. Go two years without applying for credit and remove all inquiries from your bureaus.  It is possible.
  4. Never close accounts with balances.
  5. Your goal should be to keep enough cards open to reach 50k in available revolving credit (with zero balances.)
  6. Live beneath your means, not within your means or above your means.

Anybody have any other good ones?


 

 

 

1. Some cards are worth the annual fee and can be better than those without it.  Pick what works best for you.

2. Only pay before the closing date if you want to juice your score for an application. 

3. PIF most of the time , by the due date,  Millions of people have great credit who only pay by the due date.  

4  Things happen, there are circumstances when spending the money is worth the interest.  Money is not the most important thing in life. 

5. Apply for credit only when you have need for it.

6.Only apply with people who you want to do business with.

7.Your goal for available credit should match your needs, there is no universal number.

8. Don't have more accounts than you can keep track of. 

9. Don't accept anyones rules as gospel, figure out what works for you. 

 

 

 

 

 

Message 9 of 57
Valued Member

Re: My rules for using credit cards.....

I think your rules are kind of draconian, but good for someone with no discipline.

Message 10 of 57