topic Re: So how exactly do creditors like to see CCs being used? in Credit Cards

So how exactly do creditors like to see CCs being used?

Sixburgh79 — Mon, 02 Apr 2018 03:22:57 GMT

Like outside of the obvious keeping cards unmaxed, how do creditor's like to see cards being used?

Like do you they want to see big purchases with fast payoffs? Do they like to see low balances and pif each month? Do they like to see low but responsible usage where you always pay above the minimum?

Like I have a Discover It 300/2000, citi double cash around 0/1200, chase freedom unlimited 250/3000, and an amex 0/1000

Basically I rotate their usage and then either do a pif or I'll toss 100 to 150 on it and just get it back to 0 or close to it.

Or do creditors want to see large purchases showing card usage but quick payoffs?

Or is it both? I'm just tryin to learn how to really use my cards wisely. I was at a point many years ago I couldn't get anything but I was able to get those 4 cards I mentioned which was a huge step, I just want to know how creditors like to see cards being used.

Re: So how exactly do creditors like to see CCs being used?

Anonymous — Mon, 02 Apr 2018 04:26:56 GMT

Depends on the issuer. Generally of course they like a low utilization. Asksebby said he was denied for a card, and when he called recon they told him outright they didn't approve him because he doesn't carry any balances, and they want customers who do carry balances - and they still denied him. I think he said it was Citi. That in mind, I was approved for the Citi AA Platinum on 3.12 and I even got the 60k offer although it seemed to be gone. My next app is the Premier in May then the Sears MC for my third and last Citi card in probably June. What I'm doing is keeping a balance on two or three other cards at the time of inquiry. Good options to carry temporary balances for this purpose are cards with 0% offers, cards where you're hitting a minimum spend (and thus putting hundreds or thousands of spend on it anyway), and since I'm not sure if the hard inquiry gives them acct balances as of the last statement or more current, I may time charges a day or two before the statement so a balance shows and as a plus very little interest should be generated.

Re: So how exactly do creditors like to see CCs being used?

Sixburgh79 — Mon, 02 Apr 2018 07:16:05 GMT

What about like just letting cards ride at 0% util for awhile from time to time? Like for instance my citi double cash and amex every day are at 0 right now. Are these types of lenders fond of seeing someone casually enjoy their cards or are they thinking "what a waste, you don't need anymore credit". I'm not suggesting months on end without use but do creditors like to see someone not just pounding away at their cards?

Re: So how exactly do creditors like to see CCs being used?

Anonymous — Mon, 02 Apr 2018 08:24:34 GMT

It's a peculiar thing, they like to see you carrying debt because they want you to carry debt on their cards and pay interest, but at the same time they still want low overall utilization. So I figure have maybe 2 or 3 cards reporting easily manageable balances when you apply to give the illusion that you carry realistic balances while keeping your overall utilization low.

Re: So how exactly do creditors like to see CCs being used?

Remedios — Mon, 02 Apr 2018 12:51:11 GMT

Your spending should not be guided by what a lender wants to see, but by whatever makes the most financial sense for you.
PIF and don't sweat what computer thinks.
If you start thinking about spending in a way that's most pleasing to the banks, you'll dig a very deep hole.

Re: So how exactly do creditors like to see CCs being used?

AverageJoesCredit — Mon, 02 Apr 2018 13:06:37 GMT

+1 Remedios

Unless you are trying to max your score for a loan or home, id recomend just use your cards normal, use the ones youd like rewards from etc, and really if you want a bank to see what you are spending, use the card let a statement generate and then pay in full ,if possible. You dont have to be paying interest and it isnt always necesary to pay your cards multiple times a month. Remember payments are amongst the most important factor in score alongside debt, which you want to keep low. Great job on getting your current lineup

Re: So how exactly do creditors like to see CCs being used?

NRB525 — Mon, 02 Apr 2018 13:07:22 GMT

OP, you are thinking about it wrong.

Credit is something you as an individual decide to use or not use.

If you decide to use it, you have a responsibility to pay it back, within the terms of the agreement you made with the bank.

Many people decide to use credit cards for every day spend because of the rewards. That sort of spend should be paid in full by the payment due date on the statement.

Banks make some money from your swipes using the cards, and from fees and interest. But banks lose a lot of money if you default on the debt you have taken on. So banks really just want you to pay back what you have borrowed.

Re: So how exactly do creditors like to see CCs being used?

UpperNwGuy — Mon, 02 Apr 2018 13:38:59 GMT

@Remedioswrote:
Your spending should not be guided by what a lender wants to see, but by whatever makes the most financial sense for you.
PIF and don't sweat what computer thinks.
If you start thinking about spending in a way that's most pleasing to the banks, you'll dig a very deep hole.

I think this is bad advice. If people want more cards and higher credit limits, which most folk around here seem to want, then they have to think about what the bank prefers..

Re: So how exactly do creditors like to see CCs being used?

Remedios — Mon, 02 Apr 2018 14:00:46 GMT

So, you think he/she should be making big purchases he does not need just to show banks he can pay . That's a great advice right there.

Or carry balances to show banks he'll eventually pay. That's even better advice.

How is what bank wants more beneficial than a sound management of one's finances?

Re: So how exactly do creditors like to see CCs being used?

Sixburgh79 — Mon, 02 Apr 2018 14:20:32 GMT

I'll clarify on my end a bit, I totally get it's at my discretion. I wouldn't just spend to spend, but things that I purchase whether large or small might sometimes go on a card instead of cash simply to show you can handle larger balances in a timely fashion.

Like i could have Booked my beach rental with my debit but I threw it on my discover, then paid it off. I assumed maybe that helps for them to see you handle your balances.

But I'm not going to sit and willy nilly rack cards up for no reason because I think a bank likes that, I just want to sometimes use them pending whatever I'm doing, in a way that helps them see you take care of the bill.

Re: So how exactly do creditors like to see CCs being used?

UpperNwGuy — Mon, 02 Apr 2018 14:32:14 GMT

@Remedioswrote:
So, you think he/she should be making big purchases he does not need just to show banks he can pay . That's a great advice right there.

Or carry balances to show banks he'll eventually pay. That's even better advice.

How is what bank wants more beneficial than a sound management of one's finances?

Read what f4phantom2500 and NRB525 wrote. THAT is how OP should be using credit cards. I don't know where you came up with that other stuff in your comment. It sure wasn't from anything I wrote.

Re: So how exactly do creditors like to see CCs being used?

Remedios — Mon, 02 Apr 2018 14:32:44 GMT

@Sixburgh79wrote:
I'll clarify on my end a bit, I totally get it's at my discretion. I wouldn't just spend to spend, but things that I purchase whether large or small might sometimes go on a card instead of cash simply to show you can handle larger balances in a timely fashion.

Like i could have Booked my beach rental with my debit but I threw it on my discover, then paid it off. I assumed maybe that helps for them to see you handle your balances.

But I'm not going to sit and willy nilly rack cards up for no reason because I think a bank likes that, I just want to sometimes use them pending whatever I'm doing, in a way that helps them see you take care of the bill.

I use cash back/rewards cards for everything. If I use debit card, I get nothing. At least with a CC, I get a lil bit back, and that lil bit adds up in time. As long as you're buying things you'd normally buy and can afford, there is nothing to worry about

Re: So how exactly do creditors like to see CCs being used?

Sixburgh79 — Mon, 02 Apr 2018 16:17:07 GMT

Exactly, yea I like the rewards stuff as well and why I have done what I said above. I guess what I was curious more about was low usage of a card to simplify my question, does low usage make creditors happy or not want to give someone a cli, that was more or less the question I had in mind.

Re: So how exactly do creditors like to see CCs being used?

Remedios — Mon, 02 Apr 2018 16:41:58 GMT

Most creditors want you to use their card, but how much..that's a whole another animal.

In general, I'd say that heavier use will be helpful down the road in terms of CLI , but I also think that lower usage would not preclude you from getting a CLI.

Each issuer is different, so maybe if you list your cards, people who have those cards could offer their experience with CLIs

Re: So how exactly do creditors like to see CCs being used?

Sixburgh79 — Mon, 02 Apr 2018 16:50:53 GMT

Main cards I'm referring to right now are citi double cash, amex every day, discover it and chase freedom unlimited. Those are my best cards, I do have a decent barclays as well. The others are some cap 1s like a quicksilver etc

But my main goal is building with the big 4 I listed.

Re: So how exactly do creditors like to see CCs being used?

Kforce — Mon, 02 Apr 2018 17:06:44 GMT

@Remedioswrote:
Your spending should not be guided by what a lender wants to see, but by whatever makes the most financial sense for you. PIF and don't sweat what computer thinks. If you start thinking about spending in a way that's most pleasing to the banks, you'll dig a very deep hole.

Yes, +1. Credit cards should be used for your convenience, insurance, and rewards. You do not need to pay interest to get exceptional credit, good credit limits, or great cards. They all come with time, normal use, and good payment history.

Re: So how exactly do creditors like to see CCs being used?

Anonymous — Mon, 02 Apr 2018 17:08:20 GMT

Totally just my opinion but just like any other business, they're looking to make a profit and some customers are more profitable than others.

Here's what I think:

1. They make money on interest. So they want you to carry a balance. BUT they don't want you to default on your balance so they do want it paid back.
2. Even with customers that never carry balances (me), they're still making money on swipe fees.

Re: So how exactly do creditors like to see CCs being used?

Remedios — Mon, 02 Apr 2018 17:19:02 GMT

@Sixburgh79wrote:
Main cards I'm referring to right now are citi double cash, amex every day, discover it and chase freedom unlimited. Those are my best cards, I do have a decent barclays as well. The others are some cap 1s like a quicksilver etc

But my main goal is building with the big 4 I listed.

All the ones you listed, like to see decent usage (who doesn't)

Maybe focus your spending on a particular card for a month or two before you request CLI (as long as you're not leaving the money on the table because you used that card and not the other one with better rewards for that particular purchase).

Re: So how exactly do creditors like to see CCs being used?

Sixburgh79 — Mon, 02 Apr 2018 17:26:05 GMT

Oh I've had them since fall of last year.. Not pushing for cli, just happy to have nice cards. I just make sure to pay them off that month or next, I never slack on a payment etc...

Just was look for general chat on the subject, overall I use them but only when convenient and needed etc..

Re: So how exactly do creditors like to see CCs being used?

Anonymous — Mon, 02 Apr 2018 17:55:41 GMT

I'd say as long as you're getting value out of them and keeping them paid off then it doesn't really matter. The stuff I talked about earlier is mainly about structuring your usage in a way to minimize your chances for denial for a new card (for issuers who will deny you for not carrying balances) while minimizing detriment to yourself (ie keeping interest charges low).