Credit Cards

[laryn41]

If you carry a 0 balance with your amex card will ou still get fr'd?  what if you pay in full every mth?

[SpecFile]

I can't say for sure what triggers an F/R but I will say that asking for a bunch of CLIs and opening a ton of AMEX accounts might be one reason for the F/R.  I don't think you should really worry about that right now.  Just use your new card when you need to and keep your util at 1-9%. 

If AMEX sees that you are applying for a ton of new credit, that may be a sign that you don't have the income you said you did.  I know that we all like to have high CLs reporting but AMEX may see it a bit differently.

[ObsessedwithmyFico]

I don't believe $0 balance has any bearing. If you read back on the old Amex F/R threads, you will read that people that had not yet used their cards were being FR'd.

[mauinokaoi]

Can someone give me clarification on balances whether it relates to credit score? If I have a $10000 limit does it matter if I go over 50% during the month as long as I always pay off the full balance at the end of the month or am I still penalized for going over 50%?

[cheddar]

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mauinokaoi wrote:
Can someone give me clarification on balances whether it relates to credit score? If I have a $10000 limit does it matter if I go over 50% during the month as long as I always pay off the full balance at the end of the month or am I still penalized for going over 50%?

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FICO doesn't know that you pay your balance in full every month, because that piece of information is nowhere to be found on your credit report.

Your credit report will show the balance on your statement, so yes, you will be penalized for letting over 50% report.

You can pay your balance down before your statement hits (so that the statement shows a low balance) in order to avoid this.

[FaircreditguyFL]

What's more important to you? Taking a hit on FICO or borrowing money for 0% for approximately 45-50 days? Unless you are applying for new credit, FICO is not overly important.

[TheNewWorldMan]

I'd say keep your reported balances below 10%, don't go out and grab a bunch of new credit, and don't be late anywhere else--and you've got as much of a chance of avoiding the dreaded FR as anyone else.

Judging from everything I've read, some FRs are totally random.

Of course, that's an inconvenience "up with which I would not put," and I would tell them if they're going to probe me space-alien style, they can have their card back. But that's just me.