Should I be using my CC more?

Anonymous · ‎01-27-2008

I have 2 low-limit CC and my goal is to get a big CLI so I can have a better score (FICO 626). I usually put around $80-100 (CL $350) on the card monthly and pay it down to about $20-30 by the time it gets reported. Should I be using more on my cards monthly to show them that need a CLI while still paying it down to about 10%, I can but I thought I didn't need to. My friend keeps her CC at there max and keeps it there barely paying the min. She got a CLI that doubled!!! what gives?

haulingthescoreup · ‎01-27-2008

It's pretty baffling trying to figure out what will generate a CLI. The one example I can give is that Citi/ Sears wouldn't give me one because I wasn't using it very much. So I said, well, FINE, and for three months in a row, I used 80-90% of the available credit every month, but paying it down to under 5% before reporting. After three months, I asked again, and this time I was denied because I had to wait for 6 months before making another request. Sheesh.

* 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

Anonymous · ‎01-27-2008

Different CCCs use different criteria. Your friend may have gotten a CLI because that particular CCC's internal scoring model included a determination of how much $$$$ they could make off of her. Since she was faithfully making minimum payments, yet kept the card close to maxed out, they may have figured that if they double her limit, she'll repeat the same pattern and they will make even more in finance charges.

This behvaior is not recommended to try to get a CLI, though.