topic Hey thanks all !! This really helps. I guess im good then... in Understanding FICO® Scoring

Can Fico Score Change when using Credit Cards Rarely?

MM1234 — Mon, 02 Apr 2007 23:23:56 GMT

Sorry if this has already been asked and feel free to note a link to a similar topic.

I have not been using Credit Cards since Dec. 2006 at all - not one charge - and have only been paying them down and off.

If I started to use them now for any size purchase ( small or a few thousand ) will my score drop? I feel smaller purchases would show the smallest drop but just checking.

My Ratio is 20% but didnt know if drops happen after hittin 40%+ since 40 is the common number.

Thanks for any help!

Sorry - I meant to say I haven't been using them since JU...

MM1234 — Mon, 02 Apr 2007 23:48:55 GMT

Sorry - I meant to say I haven't been using them since JULY 2006. So thats about 9 months of no charges or activity other than paying down or off. So this is why i was curious since its been like 9 months.

Thanks.

I believe they need to report six out of the last twelve...

Anonymous — Mon, 02 Apr 2007 23:57:49 GMT

I believe they need to report six out of the last twelve months. Some companies will report with a zero balance, and some will not.

Not using it isn't the criteria if you're paying down a balance.

Quarterly usage

Anonymous — Tue, 03 Apr 2007 00:10:53 GMT

There must be activity reported on an account at least once every 4 mos or so to keep ot actively figuring into your FICO score. Tha doesn't mean you have to purchase, but as long as your creditor is reporting your balance monthly reflecting your payment, it should remain active. There are other factors that will change your FICO score. No matter whether or not you use the cards, your credit history will continue to age. I do recommend using zero balance cards at least once a month then PIF to keep them actively reporting. Just not all in the same month

HTH

As far as utilization although 40% is average, lower utilization reflects more positively. 1-10% seems to be optimal but lessthan 30 is good. I still get the balances too high messages even though overall my utilization (due to a card not yet reporting PIF from maxed out) is 34%

Message Edited by Brammy on 04-02-2007 08:10 PM

Hey thanks all !! This really helps. I guess im good then...

MM1234 — Tue, 03 Apr 2007 01:06:41 GMT

Hey thanks all !! This really helps. I guess im good then since All Creditors are reporting monthly for all active accnts. I do like the idea of using them then PIF. I never needed so far "knock on wood" but guess its good to take them for a spin around the block every now and then!! ha!!

YEP - Just better watch that Speed Limit !!

What do you think of this, Brammy? I want to purchase a...

Anonymous — Wed, 04 Apr 2007 19:20:37 GMT

What do you think of this, Brammy? I want to purchase a spinner bike, and found the one I like online. They have an offer where you can make $50/month payments for 12 months (which is the cost of the bike whether you pay all at once or make 12 monthly payments). I thought I would put this on one of my $0 balance credit cards, and then every month when the $50 is added, I will PIF. This way, it will keep my card active AND I get something I want.