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Importance of usage

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EaglesFan2006
Established Contributor

Importance of usage

Obviously, i know CCCs want you to use their cards.  However, I recently ran up my CC debt after traveling and other expenses, so I'm planning to pay that down over the next few months.  That means minimal usage of my cards.  Of course, I don't want any AA either.  So what do CCs look for to ensure that your using their cards?  A certain number of transactions per month?  Is there a certain amount of time that goes by where a bank would consider the card to be stagnant or under-used?

Message 1 of 7
6 REPLIES 6
subsnao
Regular Contributor

Re: Importance of usage

Usually its 1 year of non use before they close it. Not sure about AA (like CLD and such). They won't mind that you aren't using it for a few months because you are paying it down. You really have nothing to worry about.


In the garden as of 2/22/2015
Scores:
TU: 753 (Discover FICO 7/2014) EQ: 721 (FICO 4/2014) EX: 723 (FICO 3/2014)
Age: 21
Message 2 of 7
Anonymous
Not applicable

Re: Importance of usage

I use the crap out of my cards. I use them because I want the credit grantors to see me using my cards and so far, the majority of new tradelines that I got in the past 6 months have given me CLI increases in that short time. I credit that fact with 1) using heavily and 2) letting a balance report here and there giving them some profit (interest paid) and then paying my balances keeping util low.

 

Yes, they want you to use your cards BUT using them doesn't mean you have to get into debt! Remember that. Except for emergencies, absolute need, a special occasion, NEVER charge more than you can afford to pay back quickly.

 

In your case, looks like you used the cards (which is fine) but racked up large balances that you couldn't pay back quickly.

 

Obvious advice: pay down your debt, BUT still make a charge or two on those cards while paying down the debt. Example, if you're trying to pay down a $2,000 balance, pay as much as possible monthly BUT also charge $15 or $20 to the card (new charges) and pay that off THE SAME MONTH. Now you're in a situation where you're paying down debt and still "using" the cards (with the exception being you're paying back quickly what you've charged).

 

Personally, I admire a person who's racked up debt and then pays it back. Personally, in the credit world, I think it's a great badge of honor in fact to have fallen into the charge card trap (by charging beyond yours means) and then having the character and will to pay it back (spending is more fun than paying the Piper as they say!).

Message 3 of 7
parakleet
Valued Contributor

Re: Importance of usage

I don't think you have to worry about AA for not using your cards while you're paying down debt. There are many people on this forum who routinely SD their cards depending on their needs. If it's only going to be a few months of non-use, I wouldn't worry about it. It's ridiculous to suggest that you should rack up additional charges while trying to pay down debt just in case that will somehow "spook" the CCCs.


Gardening since 7/16/14
Current: EQ 711 7/13/14; EX 724 TU 721 6/19/14
Goal: 760+
Message 4 of 7
missjae
Established Contributor

Re: Importance of usage


@parakleet wrote:

I don't think you have to worry about AA for not using your cards while you're paying down debt. There are many people on this forum who routinely SD their cards depending on their needs. If it's only going to be a few months of non-use, I wouldn't worry about it. It's ridiculous to suggest that you should rack up additional charges while trying to pay down debt just in case that will somehow "spook" the CCCs.


+1.  I've carried a lot of balances in my life and usually don't use the card while I do so.  If I had to, meaning it was an emergency, then I would.  Otherwise, I focus on paying the card down and resume using it once the debt is gone.  I haven't had AA when doing that with the exception of American Express years ago.  However, I think the problem was carrying the balance too long.

Message 5 of 7
Anonymous
Not applicable

Re: Importance of usage


@parakleet wrote:

I don't think you have to worry about AA for not using your cards while you're paying down debt. There are many people on this forum who routinely SD their cards depending on their needs. If it's only going to be a few months of non-use, I wouldn't worry about it. It's ridiculous to suggest that you should rack up additional charges while trying to pay down debt just in case that will somehow "spook" the CCCs.


+1 on that!

 

Inactivity tolerance varies between the issuers.  I think Barclays states that the card should be used at least every three months.  I've had cards I haven't used for 3-4 years without an impact.

Message 6 of 7
lhcole77
Valued Contributor

Re: Importance of usage


@Anonymous wrote:

I use the crap out of my cards. I use them because I want the credit grantors to see me using my cards and so far, the majority of new tradelines that I got in the past 6 months have given me CLI increases in that short time. I credit that fact with 1) using heavily and 2) letting a balance report here and there giving them some profit (interest paid) and then paying my balances keeping util low.

 



+1  I subscribe to this line of thinking as well

Message 7 of 7
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