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Is this a good Idea????

New Contributor

Re: Is this a good Idea????

Don't whatever you do close your accounts regardless of whether they give you CLI or lower interest rates. Just don't use them much if you are unhappy with them. Charge a tank of gas or a few groceries on each one and pay almost the balance off each month, leaving a balance of about 7% of your credit limit. Let those suckers keep building you a longer credit history.
 
I made that mistake with one of my Orchard cc's, they wouldn't lower my interest rate after I had the card for like three years, never a late payment....so I told them that I would have to close the account. Unfortunately, after joining into the forums and learning so much here, I realise I made a big mistake. Had a very good TL history building, and I closed it. We live and we learn from our mistakes. So don't you go making the same mistakes many of us have done...learn from our mistakes as much as you can.Smiley Very Happy
Message 11 of 16
Valued Contributor

Re: Is this a good Idea????

Touche...if you're using CCs properly, you're not maintaining a high enough balance for interest rates to matter. 7% or 27% of a $12.23 balance--who cares?
- - - -
in a credit-scoring postnuclear Stone Age...
Message 12 of 16
Valued Member

Re: Is this a good Idea????

I've been hearing alot of numbers, all over the board from 1% to 30%. How much of a percentage should I keep on my cards?
Message 13 of 16
New Contributor

Re: Is this a good Idea????



TheNewWorldMan wrote:
Touche...if you're using CCs properly, you're not maintaining a high enough balance for interest rates to matter. 7% or 27% of a $12.23 balance--who cares?

Good point NWM. I didn't look at it that way.
 
Just make sure you only charge what you can almost pay off each month. According to all the forums and info that I have read, the utilization should be 1-9% of your credit limit. I have about 30% Utli on my cc's currently and it has not lowered my Fico score.
 
If your credit limit is $300.00, 9% utli would be $27.00 per month. But of course don't owe the same amount each month. Change it around each month with a different remaining balance due.
Message 14 of 16
Valued Contributor

Re: Is this a good Idea????

good post cbjn, infact i was about to post the samething and then I reas your post. I am doing that for few months now. I have 3 cards with 300, 400 and 500 dollars limit. One I have set it up for cable , one for my phone and one for my internet payment. I really dont need to use the cards but I use it to build the credit so I dont care about apr because I pay full each month. Credit card companies report the balance on your statement so you dont need to carry the balance to build a credit.
 
Message 15 of 16
Established Contributor

Re: Is this a good Idea????



lost2007 wrote:
I've been hearing alot of numbers, all over the board from 1% to 30%. How much of a percentage should I keep on my cards?


For maximum FICO points 1-9%
Message 16 of 16