GECAF Question

[Anonymous]

I applied for a store card at a camera store a few months back, asking for a $3000 limit.  They came back with a $300 approval, which is of almost no use at this store (most everything you would need a card to buy is above that amount).

Still, I wanted to get some payment history established, so I bought something for $250 in December (thus taking that card to 83% util), and in January, my FICO score (as monitored through my WaMu card) dropped from 702 to 657 (all other factors of timely payments and util on my other cards remaining the same).

So, the question is:  Should I leave this account at Zero bal, in the drawer, or close it out?  If I do not use it, I do not get any payment history benefit, and if I DO use it, it seems like I get spanked for high util.  What to do, what to do?

Anyone?

Thanks!

IM

[Anonymous]

It should be noted that, once I got the bill at the end of December, I paid the balance in full.  Maybe THAT was the mistake?

[llecs]

You can pay it down to $0, let it report $0, and time your future purchases around the reporting date of that CC (assuming you'd like to use it again). You probably got dinged for the new TL and for the reported util. Even if you don't use the card, you still get positive history on it. FICO looks at the positive and negative aspects of that TL and the reported balance; it can't remember if you used it or not in the past.

[haulingthescoreup]

Grab some batteries or something every now and again to keep the card alive. (Does anyone use/ sell film any more?) Pay it off as soon as the charge hits your online account.

It's a positive tradeline, and although it probably won't help your overall util very much, it's another source of positive history with every monthly update. If you have any baddies, this will help "dilute" their effect.

[Anonymous]

Go figure. My highest trede line is with a darned camera store. I've never been able to figure that one out.