What if iam not using my CC any more??

[hoang817]

hi all,

i've paid off all my CC's and from now on... i wanted to keep my revolving accounts "balance" to $0 and Utilization is 0% .

so what iam going to do now is to cut off  all my CC 's and stop using them for good -- will my action going to be ok ? or do i have to make transactions?

thnks

[visorboy1974]

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@hoang817 wrote:

hi all,

i've paid off all my CC's and from now on... i wanted to keep my revolving accounts "balance" to $0 and Utilization is 0% .

so what iam going to do now is to cut off  all my CC 's and stop using them for good -- will my action going to be ok ? or do i have to make transactions?

thnks

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You need to keep using them at least once every few months to keep them active.  Otherwise they'll get closed by the creditor. 

[Ron1]

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@hoang817 wrote:

hi all,

i've paid off all my CC's and from now on... i wanted to keep my revolving accounts "balance" to $0 and Utilization is 0% .

so what iam going to do now is to cut off  all my CC 's and stop using them for good -- will my action going to be ok ? or do i have to make transactions?

thnks

---

No, you might want to make a small purchase on all your credit cards. Otherwise, they might close your accounts after a year or two. In the future, you might want to borrow money from the bank for cars or house. They might denied you because lack of payment history.  I know what you're thinking. You're afraid you're going to do it again.

Ron.

[Anonymous]

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@hoang817 wrote:

hi all,

i've paid off all my CC's and from now on... i wanted to keep my revolving accounts "balance" to $0 and Utilization is 0% .

so what iam going to do now is to cut off  all my CC 's and stop using them for good -- will my action going to be ok ? or do i have to make transactions?

thnks

---

Just an FYI, having a 0% util will hurt your scores, you always want to show at the most 9% util of one CC's total avail CL, best case scenerio is 1% (which is where I try at all costs to keep my util).

Not using your cards will not show good payment history (35% of your credit score) and Util is 30% of your score.(and might also cause the creditors to close the accts like the other posters have said)

How many CC's do you have? Whats your total revolving credit?

I would alternate using the cards monthly, make just small purchases, pay  the cards off by the due date except one, leaving a very small balance (5.00) and then pay that off AFTER the statement posts so this way you will show some util on your reports and good payment history. (Maxing your scores as well)

As odd as it seems, Fico likes to see a small balance on one CC rather than having them all paid to 0.

Hope this helps,

Best of Luck!!

[Wolf3]

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@hoang817 wrote:

hi all,

i've paid off all my CC's and from now on... i wanted to keep my revolving accounts "balance" to $0 and Utilization is 0% .

so what iam going to do now is to cut off  all my CC 's and stop using them for good -- will my action going to be ok ? or do i have to make transactions?

thnks

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It is a good way to end up with no credit in the future.  

Consider putting some of your monthly bills like phone, utilities on your credit card.  They get billed automatically, and you pay 1 bill instead of several.   It simplies your bill paying and you build a good credit history and score. 

Or use them for gas or groceries as well, something you are going to buy anyway and not likely to overspend on.

[MarineVietVet]

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@Wolf3 wrote:

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@hoang817 wrote:

hi all,

i've paid off all my CC's and from now on... i wanted to keep my revolving accounts "balance" to $0 and Utilization is 0% .

so what iam going to do now is to cut off  all my CC 's and stop using them for good -- will my action going to be ok ? or do i have to make transactions?

thnks

---

It is a good way to end up with no credit in the future.  

Consider putting some of your monthly bills like phone, utilities on your credit card.  They get billed automatically, and you pay 1 bill instead of several.   It simplies your bill paying and you build a good credit history and score. 

Or use them for gas or groceries as well, something you are going to buy anyway and not likely to overspend on.

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This is what I do with 4 of my cards and it works out very well. They show activity and I don't have to keep up with which card needs to be used which month.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[hoang817]

hi all,

my total revolving account CL is around $12,000

all of which only $500 CL on my CapOne CC, and everything else are my Department  Store credit cards such as JCP, Mattress Firm, Discount Tires ....

i dont buy tires or matress every year

I guess i have to use $25 per month on my $500 CAPONE CC

thnks

[haulingthescoreup]

You might want to read some of the stickies here (the threads up at the top of each board.)

Revolving credit is risky (easier to get in over your head), so showing that you can handle it responsibly is a big part of a good FICO score.

You might not need a good score now, but you might in the future --mortgage, emergency repairs or uninsured medical, etc.

If you don't need to have perfect scores now, you don't have to worry about letting balances report or not report. Just use each card every three months or so and pay it off on time. Keep your credit history clean --no lates, etc.

When the time comes that you want to optimize your scores, let one card --only one --report $10 or so, and then pay it off before the due date.

But if you don't use your cards at all, eventually they will most likely be closed by the issuers, and then you won't have any open revolving credit. No open revolving credit = lower FICO scores = more expensive credit when you do need it.