How should I use my credit cards?

[Anonymous]

How do I go about using my credit cards to have a realtionship with the bank and raise my credit line? The highest one I have is Walmart for 6000.00. After that is DC for 4500.00. and so on. I feel if I dont use my credit cards and keep it at zero they will close it. Shell did this me. Also if I ever get approved for 15000 on a card how will I use that so they wont close it? Credit cards are so confusing! Thank you.

[Revelate]

---

@Anonymous wrote:

How do I go about using my credit cards to have a realtionship with the bank and raise my credit line? The highest one I have is Walmart for 6000.00. After that is DC for 4500.00. and so on. I feel if I dont use my credit cards and keep it at zero they will close it. Shell did this me. Also if I ever get approved for 15000 on a card how will I use that so they wont close it? Credit cards are so confusing! Thank you.

---

I run my financial life through my cards, as much as possible even.  Mortgage and soon school (sadly, get with the program UCI!) are the only two places I can't use a credit card with the exception of a couple of cash only restaurants and parking garages.

Why keep them close to zero in terms of transactions?  Can always manage the reported balance if necessary for an application .

[Anonymous]

Pick a bank or credit union you already have some history with and start using their credit cards. If your score isn't high enough to get approved for a VISA siggie (min 5K), pick an average card and work your way up to multiple cards with that issuer, which you may be able to combine down the line if you don't get approved for a card with the limit you're looking for.

[Anonymous]

I have taken all recurring bill pay charges off my credit cards and moved them to online bill pay through my checking account. Credit cards are used for certain categories, gas, groceries, restaurants on one card and emergency spending on another. Switching cards every couple of months.

[SouthJamaica]

---

@Anonymous wrote:

How do I go about using my credit cards to have a realtionship with the bank and raise my credit line? The highest one I have is Walmart for 6000.00. After that is DC for 4500.00. and so on. I feel if I dont use my credit cards and keep it at zero they will close it. Shell did this me. Also if I ever get approved for 15000 on a card how will I use that so they wont close it? Credit cards are so confusing! Thank you.

---

It varies from bank to bank.

And it depends what your objective is. Is it to just make sure the account stays open; is it to get credit limit increases; is it to prevent credit limit decreases; is it to enhance your credit score; is it to save money; is it to maximize rewards and cash back; is it to maximize signing bonuses. Etc

If it's really just about getting credit limit increases, you can't go wrong using the card frequently and paying it down to zero frequently.

[Kevin86475391]

First and foremost you should use your cards in a way that works for you. Don't overspend or obsess about every transaction. If the cards become a burden to use then that's a sure sign what you're doing isn't working. You should get benefit from your cards.

IMO establishing a relationship with banks/lenders is often a bit over-emphasized. In most cases the most important factor will be your credit score and credit profile. I've never had any trouble "establishing a relationship" with a lender if I had the score/profile to support the product I was applying for. Anecdotally having a relationship with a specific lender may help in some approvals, especially if you go into a branch and ask a personal banker to recon on your behalf, but in general the main factor is your overall credit score/profile and generally avoiding ending up on a lender's blacklist due to defaults/other negative actions.

Once you have a card it doesn't take all that much to positively maintain it. Just use it normally - ideally for purchases you'd be making anyway and in a way that meets your needs - and make sure to make timely payments and keep your utilization low.

Bottom line: be responsible, but don't over think it. I have Fico 8 scores over 800, much higher credit limits than I need, and don't have any trouble getting approved for any cards I want and I haven't bent over backwards trying to please any of my lenders. I've simply used my cards responsibly, made timely payments, and kept my utilization low. It's as simple as that.

[takeshi74]

---

@Anonymous wrote:

How do I go about using my credit cards to have a realtionship with the bank and raise my credit line? 

---

Do not rely on the "relationship" and "usage" memes for CLI's.

Your credit profile and your income will be the primary considerations when determining the limits and CLI's that you qualify for.  It is not just matter of the account that you hold with the creditor.  Your entire credit profile matters.

Use your cards however works best for you, considering the standard advice about revolving utilization.  If you want higher limits then identify the issues with your credit profile and work on addressing them.

---

@Anonymous wrote:

I feel if I dont use my credit cards and keep it at zero they will close it.

---

Creditors can close accounts due to inactivity.  If you want to avoid that then confirm directly with each of your creditors what their policies are on closure due to inactivty and ensure that you meet at least the minimum activity requirements.

Avoiding closure due to inactvity doesn't really have anything to do with getting CLI's unless having an account closed would have a significant negative impact on your credit profile.  Generally speaking, revolving utilization is what you should be looking at for CLI's but keep in mind that revolving utilization is just one thing that falls under Amounts Owed and even Amounts Owed is just one factor among many.

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

All factors matter for FICO scoring purposes.  While it's not just about score, we don't have the specific underwriting criteria for each creditor/product so the best you can do is work to ensure that your credit profile is in the best possible shape with the knowledge that we do have.

[kdm31091]

I agree it is important not to overspend just to please creditors or build a "relationship", and also important not to overthink transactions.

I think relationship is over-stated. Realistically, unless you are wealthy and have a ton of assets with a certain bank, they really don't care about you as an individual. You're just another number. So with that in mind, I don't go out of my way to please them, or build a false sense of security with a "relationship". People talk about using cards for transactions even when it isn't advantageous reward wise just to "give the lender a swipe", etc. Once in awhile sure, makes sense, but I'm not going to let pleasing Barclay or Citi or whoever dictate my existence. They sure don't dictate theirs around me.

Use your cards, pay your bills, and be responsible. The rest will fall into place. Overall, don't worry too much about certain amounts of usage or a "relationship" because ultimately, your credit profile is what gets you approved. There may be some isolated circumstances where a relationship slightly helps but as a whole I think it's exaggerated. People want to believe that it helps but I just don't see any hard evidence of it. So I wouldn't make my decisions based off of that. Good luck!

[Anonymous]

---

Please delete!

Thank you!