Good question! I have one too. If you pay your balances off before your card statement comes out does the CRA see you as not using credit? How would they know if you charged 15,000 on your american express then paid it off the next day?
They wouldn't! But, for the best score, you want 1-9% util to actually post on your account each statement.
I think it is a good *new* question. Usually the negative hit for new credit (does not always happen) is 60 days.
1. If a card is dormant, does it take a hit next time it is used like new credit again?
2. Exactly how long does it take to become dormant?
That is why I pay my cards twice a month - most of it BEFORE the statement posts (ain't online CCs wonderful - you can see what your current balance is ), the rest after the statement comes out. So I have low utilization for FICO and have no finance charges
vfma1971 wrote::That drop showed me just how flawed the system is. I have one card that gives 1 to 3 % rebate which can be used for gasoline ! Now who couldn't use a little free gas these days? Soooo, I started putting every possible monthly expense on that card. (which is paid in full every month). Even though it is paid off every month, the cc company shows me carrying a monthly balance - arrgghh. That card balance varies from $1500 to $5000 a month, depending on the time of year (ie heating season, etc). They need to change their formula for this and factor in monthly interest charges, which have been ZERO since I got the card. Factoring in interest charges would help eliminate being penalized for carrying cc debt for those of us who pay off every card every month.