Question about my Credit Card (amex costco).

[IcEWoLF]

Hello everyone, I have a question, I use up to 60% monthly (credit limit) every month and I've always paid my credit cards in full every month (even if I don't need to use a credit card since I am good there).

I use up to 800-900$ monthly to pay my bills and personal expenses, I use the American Express Costco Card.

Now, last time I checked my credit score was around 780 (through this site) now, will my credit rating go down or up? I don't have any debts, I don't owe money on my car or any type of loans.

I've heard people that use more than 40% that their credit score goes down, is that true?

I've never paid interest on any of my credit cards since I always pay them off by due date automatically.

BTW I should mention this, I am 20.

I was also thinking about cancelling my first ever credit card, which is a BoFA 500$ credit card. I have no use for it since I got my Costco Amex. Should I do it? There is no annual fees.

Message Edited by IcEWoLF on 02-25-2009 11:26 PM

[Red1Blue]

Normally, we keep the balances under 10% by paying the balance off ahead of the statement cuts. Technically unless you are applying for a new loan this small drop or gain in scores should not matter. Any time before you apply for new loan make sure you bring your balances under 10% of CL's. It is also not a good idea to exceed the high balance more than 30% of you CL. That is my thoughts but ymmv.

[cobaltnv]

Welcome to the FOrums ice. 

   THe trick that many of us use is to pay off the balance before your statement cuts. THis will drop you utilization and keep your high score.

I would definitely keep the BofA card.  Even though they have gotten some bad press lately, they are a good ccc! Which BofA card do you have? How old is it? If it is more than 6-12 months old I would ask for a cli which will help you utilization. Use it every could of months for something small and pif right away to keep it active. You might not want the card now, but in a few year you will be very happy you kept the card!!

Cheers! 

[Anonymous]

Keep in mind that AMEX is slow to report.

The balance they report is 2 months behind.

TrueEarnings is a good card but it is an AmEx so you have to be very careful on how you use and manage it.

Right now, it is becoming more difficult to get approved for credit due to recession.

Recommend that you keep your BOA since it is your first CC.

If there is an AF, do a product change/conversion to a card with no AF.