topic Re: Using credit to increase score in Credit Cards

Using credit to increase score

Anonymous — Tue, 23 Jun 2009 05:49:19 GMT

I am new here, great info on this site. I paid off one of my credit cards a mastercard, about $9000 highest balance about 6 or 8 months ago. Now i have no credit card debt and great credit. A couple months ago they reduced my credit limit on the card i paid off. I have one other card and amex with i use regularly for gas and necessities. I am thinking I should use the paid off card occaisionally and pay it off everymonth but i am not sure? Will that help to maintain my good credit scores or increase them if i start using both cards regularly? Will they close that card if i dont use it for awhile?

Thanks.

Re: Using credit to increase score

Creditaddict — Tue, 23 Jun 2009 06:25:26 GMT

yes your biggest thing now is just to use it to keep it open. you are probably already getting maximum credit points for just using and showing a balance on 1 out of your 2 cards. only other thing you could consider is a store card to finish out your mix.

Re: Using credit to increase score

Anonymous — Tue, 23 Jun 2009 14:39:32 GMT

Thank you. I think I will use it here and there and make sure to pay it off every month ofcourse. I have never had a store card in the mix, I will have to read up and consider that..

Re: Using credit to increase score

Karatz — Fri, 26 Jun 2009 06:46:13 GMT

I think creditors want someone responsible not someone with a good score. It's one thing to have a lot of credit available and never use it, it's another thing to have a lot available and use it responsibly. I don't think very many CLD are for responsible users, key term is users.

Re: Using credit to increase score

Anonymous — Fri, 26 Jun 2009 12:59:00 GMT

@Anonymous wrote:
I am new here, great info on this site. I paid off one of my credit cards a mastercard, about $9000 highest balance about 6 or 8 months ago. Now i have no credit card debt and great credit. A couple months ago they reduced my credit limit on the card i paid off. I have one other card and amex with i use regularly for gas and necessities. I am thinking I should use the paid off card occaisionally and pay it off everymonth but i am not sure? Will that help to maintain my good credit scores or increase them if i start using both cards regularly? Will they close that card if i dont use it for awhile?
Thanks.

Failure to utilize your credit can get closed for "inactivity."

Small occassional use can get CLD for "lack of need" for your CL.

The "use it or lose it" rule is something to consider. But of course, don't incur unnecessary debt, carry balances and pay interest solely for FICO or CL purposes. If you don't use the card much, don't use much of your CL, then even if they lower the CL your FICO won't be impacted and you still have the CL you need for your normal uses. While it "sucks" to get a CLD, maintain the account and history and you will probably get it back once the tide has turned and the credit markets get back above water, so to speak.

CLD will not hurt FICO unless your carrying balances and your pertentage of utilization goes up as a result.