@nearlythere wrote:Account Activity/Account Management: I want to demonstrate good management of credit. Do I need to continually charge small amounts, or is continually paying small amounts on a low balance sufficient?
Interesting question, both get reported but I'm not certain how FICO or any other algorithm or underwriting decision looks at that, so I do both. Edit: some people just paying down cards have reported AA on accounts, that might be from not using the card for new charges, or could be some other factor too.
Personally I try to make it as easy possible regardless of how it's implemented: I charge at least something once a month on every card, I let a balance report, and make one payment each month on every card. This is probably overkill, but I know first-hand how corners get cut in software, so I don't leave that bit to chance.
I know this doesn't maximize instant-in-time utilization, but I don't apply that often for loans / additional credit, so I can maximize that the month prior to application by the usual revolving utilization tricks.
@nearlythere wrote:Account Activity/Account Management: I want to demonstrate good management of credit. Do I need to continually charge small amounts, or is continually paying small amounts on a low balance sufficient?
The best way to increse FICO scores is to charge heavy on the card and PIF if you have other cards (make sure at least 1 card reports a small balance). If this is your only card, make sure to leave a 1-9% balance on it and PIF after the statement closing date.
Interesting question. My score dropped because I has a small balance on a few cards. (Per FICO). Didnt seem to matter that each balance was really low. I have started using the cards monthly (to keep the credit company happy) but paying the balance in full on as many cards as possible to keep my FICO low. I have 6 accounts and try to only keep a balance on two or three. Plus I hate interest charges but my Discover has first 6 month free interest. Gawd I love that card!!! 