Reply
Regular Contributor
Posts: 117
Registered: ‎04-30-2008
0

Paying off debt and credit card usage

I've recently put myself on a "financial diet" and I'm aggressively paying off the debt I have in order to (possibly) buy a condo next year.  I use my credit cards a lot for every day use, but I'd like to switch to my debit card because I think that will help my overall mindset.

 

Now my question is, will creditors decrease my credit lines because of my lack of usage?  I'm primarily worried about Amex and Discover.  I do also have Citi, which is a $13.5K limit, and have heard all of the stories of those who have had their accounts closed, but they raised my CL last year and are regularly sending me BT offers, so I don't think this is in the near future (but I'm not dillusional to think they'll stick it to me).

 

Is there anything I can do to prevent them from closing or decreasing CL b/c of my own mission to do better financially?


Starting Score: 703
Current Score: 7/8/10: TU - 738 EQ - 750
Previous Score: 1/22/10: TU - 703 EQ - 714
Goal Score: 750


Take the FICO Fitness Challenge
Regular Contributor
Posts: 231
Registered: ‎08-07-2009
0

Re: Paying off debt and credit card usage

AMEX thinks that way, but if it causes you to spend more than you are able to PIF each month, then who cares!

-800 or Bust...!
Established Contributor
Posts: 709
Registered: ‎08-14-2008
0

Re: Paying off debt and credit card usage

I use my CCs for most of my purchases every month.  I only use my debit card for certain situations (like when the cards I have are about to hit their statement date).  The protection laws regarding CCs are much better than debit cards and if your identity becomes compromised you have better recourse.  If they get a hold of your debit card you are essentially screwed if they drain your account.  CCs usually have 0% liability against fraudulent use and I think the banks watch them much more closely.  You just have to be more diligent with paying CCs off every month and not look at them being like free money.  If you know that when you use it, you have to pay it back soon.

 

Congrats though on taking the initiative to be debt free.  I have to say it's a wonderful feeling.

CCs: Chase Freedom VS 6.9k, CSP VISA Sg 7k, BofA Amex 24.5k, Discover 11.5k, US Bank Cash+ Visa Sg 17k, Macy's Amex 8k/1.5k, Gap Visa 10k, Best Buy 11.1k, Citi TY MC 10.8k, Citi AA Amex 6k, Nordstrom VS 10k, Costco Amex 12k, BofA CR VS 5k, Amex BCP 9.5k, Amex ED 5k, Sears MC 9k, HD 7k, Target 600, Amazon 7k, US Bank MC 15k, US Airways MC 8k, NFL Visa 4k, Patelco Visa 10k, Penfed PR VS 44.6k, Chase United VS 13k, Chase Hyatt VS 8k, Citi Simplicity 13.3k, PayPal MC 7.5k, Compass Visa 4k, WF VS 14k, FNBO Amex 14.1k, OCCU VISA 15k, TR Visa Sg 16.3k, Capital One QS Visa 11k, FRN MC 15k, HSN 4k, Saks WEMC 10k/4k, Chase Ink 18k, Barclay Arrival 10k, Ebates VS 8k, Orbitz VS 9k, NASA V 30k, USBk FP VS 17k, DC 30k, VirgAm 15k, Sams MC 15k
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 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.

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.