topic Re: CC Usage Rules in Credit Cards

CC Usage Rules

Rhaeny — Wed, 20 Nov 2024 05:40:11 GMT

Wow, I haven't been here in so many years. I was a regular on here and learned so much, but it's been so long that I have just about forgotten everything. Just call me green now

Anyway, I have quite a few cards and I hadn't been using them all. I know that I need to keep some activity on them, so what I've done is spread out some of my bills over them and are paid in full each month. I just started doing this in August because I happened to look at my reports and realized that I hadn't used some of them in almost a year and I didn't want them to close them.

So my question is how do you handle sock drawer cards and how often should they be used? Does it affect your score constantly showing activity on all of your cards every month? Or would it be better to just use them periodically and put my spend on one or two cards?

Re: CC Usage Rules

FireMedic1 — Wed, 20 Nov 2024 07:46:17 GMT

Each company has their own dont use it lose it. Get a tank of gas. Let it report. PIF. Scores arent affected for non use. On the other hand. If you have a SD card and want a CLI. Use it frequently. Beter chance then.

Re: CC Usage Rules

Rhaeny — Wed, 20 Nov 2024 13:30:49 GMT

Okay thanks for the info. I have some old cards from Merrick and Ally that I got when I was rebuilding with that are 7 years old. At this point I've probably reached the highest limit they will give me and only want to keep them for age. Other than that those rebuilder cards don't offer anything.

So I'll make sure to use them every 4 months or so and concentrate on my main cards. Thanks again!

Re: CC Usage Rules

pizzadude — Wed, 20 Nov 2024 14:23:29 GMT

Moved to Credit Cards

Re: CC Usage Rules

FlaDude — Wed, 20 Nov 2024 14:50:48 GMT

@Rhaeny wrote:

Does it affect your score constantly showing activity on all of your cards every month?

If you pay off the balances before the statement cuts, any activity won't be reported and won't have an effect on your scores at all. If you have a lot of cards reporting balances, even small ones, that could cost you a few points. Usage has no memory in FICO models before 10 so what you do from one month to another will only affect that month's score.

Re: CC Usage Rules

Rhaeny — Wed, 20 Nov 2024 15:05:43 GMT

Okay yes understood now. I was thinking along those lines as you stated but was unsure. I have my cards automatically set to PIF each month at their websites, however I still do see some small balances reported...albeit max 3% utilization on any of them.

I'm going to go for only one or two cards reporting balances, SD the old rebuilder cards and only use periodically and see how much that changes up things.

Thank you!

Re: CC Usage Rules

SouthJamaica — Wed, 20 Nov 2024 15:31:26 GMT

@Rhaeny wrote:
Wow, I haven't been here in so many years. I was a regular on here and learned so much, but it's been so long that I have just about forgotten everything. Just call me green now

Anyway, I have quite a few cards and I hadn't been using them all. I know that I need to keep some activity on them, so what I've done is spread out some of my bills over them and are paid in full each month. I just started doing this in August because I happened to look at my reports and realized that I hadn't used some of them in almost a year and I didn't want them to close them.

So my question is how do you handle sock drawer cards and how often should they be used? Does it affect your score constantly showing activity on all of your cards every month? Or would it be better to just use them periodically and put my spend on one or two cards?

1. I don't have sock drawer cards. I try to use everything at least once a month.

2. No the amount of activity there is on the card does not affect your score. It can, however, affect your relationship with the lender.

3. As to whether it's best to concentrate spend on one or two cards, that's entirely a personal decision.

4. There has been some discussion above about reporting balances. The reported balance does not indicate what your activity has been. There are several fields in the credit reports which indicate whether there has been activity, and how much.

Re: CC Usage Rules

mgood — Wed, 20 Nov 2024 16:17:21 GMT

@SouthJamaica wrote:

4. There has been some discussion above about reporting balances. The reported balance does not indicate what your activity has been. There are several fields in the credit reports which indicate whether there has been activity, and how much.

Yes. That is something that is commonly misunderstood here. Utilization is the balance that gets reported, usually the statement balance. It has nothing to do with how much the card is utilized in between those dates.

If your balance is $0, your utilization is 0%.

If you have a $500 balance and a $1000 limit, utilization is 50%.

It makes no difference if you run it up to the limit and pay it off several times during the month or if you don't use it at all. Utilization is only dependent on the balance on the date it gets reported.

Re: CC Usage Rules

GZG — Wed, 20 Nov 2024 17:22:03 GMT

@Rhaeny wrote:
So my question is how do you handle sock drawer cards and how often should they be used? Does it affect your score constantly showing activity on all of your cards every month? Or would it be better to just use them periodically and put my spend on one or two cards?

6 months is a pretty safe, conserative amount of time to make sure cards get usage this often. cards used at least every 6 months pretty much never get closed for inactivity.

as you've seen, it's not unreasonable for a card to go a year, if not 2+ without being closed for inactivity, but this can depend widely on the lender.

I would either schedule a bill to go out on all of them monthly, or just schedule two days a year 6 months apart to put a dollar charge on any SD cards to keep them in use so you're not closed for inactivity

Re: CC Usage Rules

Anonymous — Wed, 20 Nov 2024 21:35:17 GMT

@GZG wrote:
@Rhaeny wrote:
So my question is how do you handle sock drawer cards and how often should they be used? Does it affect your score constantly showing activity on all of your cards every month? Or would it be better to just use them periodically and put my spend on one or two cards?
6 months is a pretty safe, conserative amount of time to make sure cards get usage this often. cards used at least every 6 months pretty much never get closed for inactivity.

as you've seen, it's not unreasonable for a card to go a year, if not 2+ without being closed for inactivity, but this can depend widely on the lender.

I would either schedule a bill to go out on all of them monthly, or just schedule two days a year 6 months apart to put a dollar charge on any SD cards to keep them in use so you're not closed for inactivity

While not the common MyFico view, you may also want to think about whether the keep-alive effort is worthwhile. If your scores are now reasonable, with a decent average age, decide how significant one or more of the older cards dropping off will be, particularly as they can continue to report for 10 years or so. Having old, useless cards close isn't necessarily a disaster.

Re: CC Usage Rules

Rhaeny — Wed, 20 Nov 2024 23:15:30 GMT

@Anonymous wrote:
@GZG wrote:
@Rhaeny wrote:
So my question is how do you handle sock drawer cards and how often should they be used? Does it affect your score constantly showing activity on all of your cards every month? Or would it be better to just use them periodically and put my spend on one or two cards?
6 months is a pretty safe, conserative amount of time to make sure cards get usage this often. cards used at least every 6 months pretty much never get closed for inactivity.

as you've seen, it's not unreasonable for a card to go a year, if not 2+ without being closed for inactivity, but this can depend widely on the lender.

I would either schedule a bill to go out on all of them monthly, or just schedule two days a year 6 months apart to put a dollar charge on any SD cards to keep them in use so you're not closed for inactivity
While not the common MyFico view, you may also want to think about whether the keep-alive effort is worthwhile. If your scores are now reasonable, with a decent average age, decide how significant one or more of the older cards dropping off will be, particularly as they can continue to report for 10 years or so. Having old, useless cards close isn't necessarily a disaster.

I had to rebuild after a disastrous downfall in 2014 that sent me into bk. I was so outdone that I didn't start rebuilding 2018, so what I have is only since then. I think my AAOA ranges from 6 to 7 years. Those rebuilder cards I only wanted to keep for age so I will just use them maybe 2 or 3 times per year.

I don't think my scores are fantastic, just good. I have a long way to go to reach 10 years so I'll have to do some juggling with those old useles ones until then. I'm pretty happy with what I have now and don't see a need for anything else.

I was just wondering how FICO scores when it was reporting on all 10 cards small balances (1 to 3% utilization) vs just one or two cards. I'm going to see if it makes any difference and just SD the oldies.

Re: CC Usage Rules

SouthJamaica — Thu, 21 Nov 2024 22:35:52 GMT

Closed cards don't necessarily continue reporting for 10 years. Sometimes they drop off much sooner. Sometimes they continue for much longer.