Does this impact your score positively?

seruby · ‎04-11-2011

I recently obtained a credit card which I have no intention of using since I have 2 others I use - it simply makes my utilization look better since I have the extra available. That being said, it is my understanding that unused credit cards have no impact on your score.

So my question is: If I use this newly aquired card to buy a pack of gum every month then pay it off when my statement comes in, would that have a better, worse, or equal impact on my credit score as if I don't use the card at all?

cdtotten · ‎04-11-2011

The credit line will factor in as long as the card is open, despite non-use. That being said, most CCCs will close an inactive account after 3-6 months of no use. Store cards are more forgiving. Most people on these boards recommend you setup a recurring monthly bill on each card, and just pay it off monthly before the statement cuts. Keeps the CCC happy for use and for FICO purposes, will report a $0 balance.

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seruby · ‎04-11-2011

Sounds like a plan. Right now I pay all my bills on one card and pay that down, and use the other card I have for purchases. I can split my bills up across 2 cards. So you're saying, for example, I can use my card to pay my cable bill, then immediately pay the credit card with no repercussions? That's exactly what I'd like to do, but thought doing that wouldn't be good.

Anonymous · ‎04-11-2011

@seruby wrote:
I recently obtained a credit card which I have no intention of using since I have 2 others I use - it simply makes my utilization look better since I have the extra available. That being said, it is my understanding that unused credit cards have no impact on your score.

So my question is: If I use this newly aquired card to buy a pack of gum every month then pay it off when my statement comes in, would that have a better, worse, or equal impact on my credit score as if I don't use the card at all?

It's much better to use your card on a regular basis and PIF than to leave it dormant. The monthly balance reported to the CRA's will be zero in both scenarios, but the card will show activity to the OC if you use it even for small purchases and PIF.