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New Visitor
Posts: 1
Registered: ‎07-01-2008
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negative impact of credit cards

I have recently begun monitoring my credit score. I have a realtively high income low mortgages on my two houses and no car payments and have found that the biggest gig to my credit score is my credit card balance. I always pay my balance at month end but have a lot of business expenses I put on my personal card and get reimbursed. Again I pay balance at the end of the month so I never have an outstanding balance. I have not been worried about this in the past since I do not have the need for credit but our state recently approved credit scoring for personal insurance so I am actually paying a higher homeowner and auto premium becuase of my credit score because of a high credit card balance that in my opinion (since I pay off each month) I do not really have. I only use one card and cannot imagine it would be beneficial to utlize multiple cards (since it would be the same sum total).
 
I am sure I am not breaking new ground here. Can someone lend insight to what seems to be inquitable process.
 
Epic Contributor
Posts: 25,822
Registered: ‎10-23-2007
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Re: negative impact of credit cards

Since you pay it off each month, you may want to consider either a Business Credit card if you own the business as this would not show up on your personal credit or an American Express Charge card as this balance does not get calculated into your util either.
Or else you have to start paying the balance way down before the statement cuts or get another credit card to balance out util.
Fico Scores 8: EX 694. TU 689. EQ 658. 05/26/2015
Super Contributor
Posts: 8,197
Registered: ‎03-25-2007
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Re: negative impact of credit cards



Creditaddict wrote:
Since you pay it off each month, you may want to consider either a Business Credit card if you own the business as this would not show up on your personal credit or an American Express Charge card as this balance does not get calculated into your util either.
Or else you have to start paying the balance way down before the statement cuts or get another credit card to balance out util.


Agreed on all points.
 
You could ask for Credit Line increases on your cards also
 
A charge card would NOT count against your Credit Card balance.
 
And do NOT get a signature credit card!
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Established Contributor
Posts: 996
Registered: ‎04-01-2008
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Re: negative impact of credit cards

Curiosity picked...why not a Signature???


1/28/14 EQ 817, (6/30/14)EX 821, TU 817 on 6/13/2014

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Moderator Emeritus
Posts: 6,794
Registered: ‎09-29-2007

Re: negative impact of credit cards



GFer wrote:
Curiosity picked...why not a Signature???


Signature cards do not report a credit limit, and in some cases this hurts one's revolving utilization calculation.  Since the OP's concern is with reported utilization, the last thing OP wants is a Signature card.

 
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