cancel
Showing results for 
Search instead for 
Did you mean: 

Using your CL

tag
Anonymous
Not applicable

Using your CL

For good discussion purposes.

 

 

Me personally after i qualify for my dream house (years down the road im young) i will no longer play the fico point game so hardcore, but also not saying im going to cause myself to be in ridiculous amounts of debt and lose everything ive worked hard for. 

 

We work so hard for big CL that we should use them every once in a while. 

 

We dont kno what lenders think obviously but what would be a rule of thumb you guys play by if you didnt play by the FICO point system because you dont have to anymore but made sure you didnt recieve any AA becasue of it?

 

 

Using a chunk of a CL and making sure its paid of in 6 months? 12 months?

 

Making sure you have the 2 cards you use the most and their equivalent CL locked in savings so you can use those cards but if something drastic happend you could easily pay them off?

 

What ways can you guys come up with? And what advice would you offer someone like me that is in this boat now?

 

Message Edited by jdp2134 on 09-05-2009 11:41 PM
Message 1 of 16
15 REPLIES 15
marty56
Super Contributor

Re: Using your CL

I'm not sure what boat you think you are in.

 

Anyway, nothing is likely to change in terms of CC management.

 

Always PIF.  Do not revolve a balance unless it is for an emergency.

 

If you want to make a major purchase, look for a store card that is 0% for a fixed term and PIF before the term date.

 

If you decide to revolve a balance, unless it is an emergency and you dont have an emergency fund, 12 months is probably the maximum time I would go.  3 to 6 months would be better.  Do not use the card again till its PIF.

 

In terms of CC debt, you are either in or out, the amount doesn't matter.  When you apply for your mortgage, showing no CC debt is the best way to go.

1/25/2021: FICO 850 EQ 848 TU 847 EX
Message 2 of 16
smallfry
Senior Contributor

Re: Using your CL

OP why would you put yourself into debt just because you have the available credit to do so? Why not just save your money?
Message 3 of 16
Established Contributor

Re: Using your CL


@Anonymous wrote:

For good discussion purposes.

 

 

Me personally after i qualify for my dream house (years down the road im young) i will no longer play the fico point game so hardcore, but also not saying im going to cause myself to be in ridiculous amounts of debt and lose everything ive worked hard for. 

 

We work so hard for big CL that we should use them every once in a while. 

 

We dont kno what lenders think obviously but what would be a rule of thumb you guys play by if you didnt play by the FICO point system because you dont have to anymore but made sure you didnt recieve any AA becasue of it?

 

 

Using a chunk of a CL and making sure its paid of in 6 months? 12 months?

 

Making sure you have the 2 cards you use the most and their equivalent CL locked in savings so you can use those cards but if something drastic happend you could easily pay them off?

 

What ways can you guys come up with? And what advice would you offer someone like me that is in this boat now?

 

Message Edited by jdp2134 on 09-05-2009 11:41 PM

Using a large portion of your CL and PIF before the statement cuts will accomplish three things I can immediately think of. One, you will not pay interest. Two, your highest reported balance to the CBRs will appear high in comparison to your CL, thereby showing the CCC more financial strength than if you paid off the same balance in 6 or 12 months. Three, the usage will not adversely affect your FICO score.

 

If you will pay interest on a CC and have the funds not to, there is no need to carry a large balance on any CC, unless you have other financial goals not met (i.e. savings) in which case the charge should not be made except for an emergency. IMHO

 

 

Message Edited by plasticman on 09-06-2009 07:57 AM
Message Edited by plasticman on 09-06-2009 07:59 AM
Message 4 of 16
Established Contributor

Re: Using your CL


@marty56 wrote:

I'm not sure what boat you think you are in.

 

Anyway, nothing is likely to change in terms of CC management.

 

Always PIF.  Do not revolve a balance unless it is for an emergency.

 

If you want to make a major purchase, look for a store card that is 0% for a fixed term and PIF before the term date.

 

If you decide to revolve a balance, unless it is an emergency and you dont have an emergency fund, 12 months is probably the maximum time I would go.  3 to 6 months would be better.  Do not use the card again till its PIF.

 

In terms of CC debt, you are either in or out, the amount doesn't matter.  When you apply for your mortgage, showing no CC debt is the best way to go.


+1

 

The highlighted part of this post is particularly important with respect to your goals. IMO

Message 5 of 16
jackg
Established Contributor

Re: Using your CL

DEBT is the devil
FICO scores on November 17, 2014 (prior to applying for and being approved my mortgage)

EX=738
EQ=735
TU=754

FICO scores on March 4, 2015 after being approved for mortgage and buying the home, the mortgage isn't yet reporting.
EX- 689 EQ- 739 TU- 739
Message 6 of 16
Anonymous
Not applicable

Re: Using your CL

im not in any boat (gardening credit i guess could be a boat).

 

And we all know its not good to use/apply for credit during underwriting.

 

The point is ( which maybe some of you missed) is why get a 20k+ CL when you will never ever use even close to that? Whats the point? Esp. after you have high scores (760+) and are in a mortgage.

 

You could get something you want have a plan to pay it off in 6 or 12 months or whatever while having your money work somewhere else for you for the time being. Obviously in a emger. it doesnt really matter at the time your just worried about what is happening now and fixing it.

 

No need for high CL to keep util down if your not even worried about util since you are PIF before statement cuts anyway. So whats the point?

 

If thats the case why not cut your CC down to your 2 fav and a store card and be done with it? But most of us wont and will keep 5+ cards at any given time making sure they are all active so no AA happends.

 

All im saying is why get high CL if you wont use them and are not obviously worried about util since you PIF anyway.

Message Edited by jdp2134 on 09-06-2009 02:09 PM
Message 7 of 16
Jazzzy
Valued Contributor

Re: Using your CL


@Anonymous wrote:

im not in any boat (gardening credit i guess could be a boat).

 

And as i stated in my post it says AFTER you got a mortgage as we all know its not good to use/apply for credit during underwriting.

 

The point is ( which maybe some of you missed) is why get a 20k+ CL when you will never ever use even close to that? Whats the point? Esp. after you have high scores (760+) and are in a mortgage.

 

You could get something you want have a plan to pay it off in 6 or 12 months or w/e while having your money work somewhere else for you for the time being. Obviously in a emger. it doesnt really matter at the time your just worried about what is happening now and fixing it.

 

No need for high CL to keep util down if your not even worried about util if you are PIF before statement cuts anyway. So whats the point?


 

I think that when I no longer need a high FICO for personal mortgages, financing of any type, etc. that I will likely still try to maintain a good score, and having decent CLs can impact that score. We PIF before statement cut and hopefully will be able to maintain that practice, so I may never have a need for those credit lines. Can't see that it hurts to have them.

 

FICO scores make a difference in what we are charged for car insurance, for example. What if I decided to help a grandchild out in college? If I signed for a school loan, for example, I'd like to see it at the best rates. Right now, CLs are one tool in the FICO toolbox.

 

Hopefully I won't have a need for a high FICO someday soon...but, if I do...I want it to be ready for me.

Message 8 of 16
creditwherecreditisdue
Senior Contributor

Re: Using your CL

Do you actually think that if you go in somewhere, make a $5K purchase on your CC and PIF before the statement hits that you are not using your CL? Or are you of the impression that it only "counts" if you revolve a balance for one or more months.

 

Personally I both PIF and revolve balances, whatever suits my needs best at the time. I also have all but $500 of what I revolve at ARP's <= 2.99%. I also play the "FICO game" pretty hard. It is in my best interest to do so. I don't like AA and I do like lower APR's. Keeping my CL's topped off helps make that happen.

Message 9 of 16
Anonymous
Not applicable

Re: Using your CL

what is the point of making a 5k purchase on a CC if your going to just PIF anyway? Mine as well just pay the 5k at time of sale. That to me isnt using your CL at all since your PIF anyway. Using your CL to me is making a big purchase and having a plan to pay it off in 6 or 12 months or whatever and having your money work somehwere else for the time being.

 

Dont get me wrong here people im not saying that i wont continue to play the game for years to come im just playing devils advocate.

 

If you know you are going to be helpin a kid out with loans or whatever you already know how to play the "game"  to get your scroe where it needs to be but why continue to play it so religiously after you have mortgages,cars, etc.?

Message Edited by jdp2134 on 09-06-2009 09:05 PM
Message 10 of 16
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.