topic Re: Need an honest valid answer Which is better? in General Credit Topics

Need an honest valid answer Which is better?

dobirdsmommy — Sun, 27 May 2012 02:10:50 GMT

Between DH and I we have 4 cards. He is an authorized user on my CAP1 and we both have our own Orchard. I have my own car loan for 6 months now with Santander...

I have a Fingerhut account which showed as an installment loan which I paid off. DH has nothing else out there besides his orchard, CAP1 and fingerhut as well in his name.

Obviously our cards Orchard have 300 limit

Cap 230

My car loan is just what it is from Santander. I pay early and I pay a nice killer HUGE interest.

Is it better to constantly charge our cards and pay them off or to not use them. Which looks better to rebuild?

I do everything thru my debit card. Would we be in a better or worse spot to charge on our 300 limit cards and keep paying them or just not use them?

Or should I swipe the heck out of the cards and pay it every week.

Right now we are not using them.

Re: Need an honest valid answer Which is better?

jamie123 — Sun, 27 May 2012 02:41:40 GMT

You can use the cards as much as you want, but you need to make sure your payments are always on time and never late. You want to demonstrate that you can use credit responsibly.

Now when you plan on applying for additional credit within the next month or two, and you what to get your scores as high as possible for when the new creditor pulls your score, this is what you need to do:

One card should report a balance between 1% and 9% of all the credit limits of all the cards added together.

All the other cards should report zero balances.

You really need to be able to go online and make electronic payments during the month so you can pay the balances down so the cards will have the proper balances reporting.

Following that scenario will get your score on the report date to be the highest it can be at that particular point in time. It is really only important if you plan on applying for additional credit within the next month or so.

Good luck!

Re: Need an honest valid answer Which is better?

RobertEG — Sun, 27 May 2012 03:37:14 GMT

Much better to show some use. Even if you PIF each month and accrue no interest, the creditor is still making $$ from their business client.

Sock-drawered cards are not apt to be considered for CL increases, and prolonged cobwebs may lead to creditor closing. It costs them $$ to maintain and bill on the account.

Re: Need an honest valid answer Which is better?

marty56 — Sun, 27 May 2012 13:36:52 GMT

@RobertEG wrote:
Much better to show some use. Even if you PIF each month and accrue no interest, the creditor is still making $$ from their business client.
Sock-drawered cards are not apt to be considered for CL increases, and prolonged cobwebs may lead to creditor closing. It costs them $$ to maintain and bill on the account.

I just lost almost 25% of my available credit from a store card for a one time purchase that was closed do to lack of use. I didn't have a way to use it though.

Re: Need an honest valid answer Which is better?

Anonymous — Sun, 27 May 2012 17:01:44 GMT

@marty56 wrote:
@RobertEG wrote:
Much better to show some use. Even if you PIF each month and accrue no interest, the creditor is still making $$ from their business client.
Sock-drawered cards are not apt to be considered for CL increases, and prolonged cobwebs may lead to creditor closing. It costs them $$ to maintain and bill on the account.
+1

I just lost almost 25% of my available credit from a store card for a one time purchase that was closed do to lack of use. I didn't have a way to use it though.

That sounds like my BP gas card. I got it last year and as soon as I got it, I use it the first time and the cashier tells me that all the BPs in town are becoming Exxons. Talk about a wasted HP! So it is in the SD except for when I go on road trips. Only card I have that is connected to Chase, so I go out of my way to use it. I want to get a Chase card sometime in the next couple of years.

Re: Need an honest valid answer Which is better?

dobirdsmommy — Mon, 28 May 2012 00:50:10 GMT

So if I charge 200 then pay it then charge 250 then pay it and follow this same sequence.. this will be better to do then not use the card? at the end of the month I should have charged like 1500 on a card with a 300 limit but kept on paying it to pay it down to zero.....

I am just scared with using my debit card so much.

Re: Need an honest valid answer Which is better?

AndySoCal — Mon, 28 May 2012 02:36:13 GMT

I would use the credit card to pay a couple monthy expenses like the electric, water , gas, TV, Internet. I would also PIF each month. Judging from your scores and post I suspect there is a negative item or two on your credit report. I would focus time and rescources on getting these items taken care of. I would also investigate the Capital One credit steps program to help build your credit. Talk to Cap 1 to see if your eligilbe for the program and what it is.

Re: Need an honest valid answer Which is better?

dobirdsmommy — Mon, 28 May 2012 02:49:47 GMT

Oh forgot to update them from my report lol but yes 2 first premiers. They don't do PFD and it is close to the SOL. At this point paying them would be worse. Ex is horrible because of inquiries. I got my car in oct and took a hit with 11 inquiries.

Re: Need an honest valid answer Which is better?

marty56 — Mon, 28 May 2012 10:13:07 GMT

If the accounts are close to the SOL, it is interesting that the won't do a PFD and hopefully they won't take you to court. One the 11 INQs, where they all for the autoloan. If so, they may only count as one and IMHO that they are on EX, better than being on EQ and TU. Also in 5 months, they won't count at all, so hang tough.

Re: Need an honest valid answer Which is better?

dobirdsmommy — Mon, 28 May 2012 12:15:23 GMT

I tried this week again. I offered them double the amount I owe for deletion. If they take me to court for 2 cards for 200 and they would not take 800 they are seriously upside down. My inq are all on ex. All my scores arein the 500s again. My eq and tu barely have anything on them except fob and my two current cards and loan. It took 3 weeks of inquiries for me to get the loan.

Re: Need an honest valid answer Which is better?

TilltedBrim — Mon, 28 May 2012 12:21:21 GMT

Marty I'm curious to know why do you feel its better to take the inquiry hit on EX rather than EQ and TU... Thanks in advance.