Re: Newbie Question..
11-13-2012 03:56 PM
it honestly doesn't matter to use your credit card if you use it 100 times a month or 1 time a month or let alone once every six months to keep it in open status. Your scores will rise regardless....
You should every expense you can on a credit card not for a better credit score cause it won't make a difference how much you spend, the main thing is if you are a responsible consumer or not. If I charge a order of fries every month on a credit card it won't make a difference to my score vs someone who made over 10,000 transactions in one month for your fico score. although this could possibly help with your internal scoring with companies like Chase and Amex, but for Fico it does not.
You should use every expense you can cause it's a clean documentation and proof in case you lose a receipt, and things are more disputable. also with things with good credit cards like 90 day price match protection, reward points/cash back , travel insurance, car rental insurance etc.
Your Fico score only cares if you pay on time, and carry a low balance. Although in a manual review if they see the highest limit ever charged was $1 on a $10000 limit they might wonder what the heo? lol
If your statement is sent out on the 17th just pay your balance before it cuts at 15th to lower your chances you'll get a high balance reported. Remember somecompanies will post your spending anytime they wish.
personally I pay mine within few hours to 4 days of a big purchase. Just make sure you don't spend more than you can afford to pay off and your fine. even if you wreck your Fico by charging up 100% of your limits one month it won't matter in the following month if you pay itdown. just make sure to lower your balance a month or two before a big purchase like a car loan or a mortgage and you'll be fine. (or before apping for another credit card)
If my credit is at 100% limit for a year with minimum payments and pay it down as long as companies don't lower my limits or close my cards as high risk your fico score won't be any different then someone who pays 100% of their spending 1 minute after the transaction.
I got my scores upto what it is now from doing what I do,with only maybe 2 charges a day on average if that. I pay it off so I don't have to pay any interest fees within their grace period and I'm set to go. Although my Fico's about to do a nose dive from charging $15,000 on a convience check to buy a house that's "cash offer only" lol but I'm not worried cause that's my low interest oh sh it card to balance transfer at 5-6% interest rate it's stil lower than most people's 2005-2007 mortgages.
I beg to differ with your statement on utilization. If you max out your credit cards by having an over 90% utilization report, your scores will drop a lot! Like I mean perhaps 75 to 100 points!
Starting Score: EQ 658 6/18/12
Current Score: EQ 696 9/5/14 - EX 687 7/21/14 - TU 682 7/21/14
Goal Score: EQ 720+
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