@Anonymous wrote:
to the people who pay in full every month, are you just doing this to improve your score or is that just a trait you have aquired over the years with regards to you approach to money? i mean if you can pay in full every month why even have the credit card?...why not just save the cash and buy the product/service with cash?
if you were not in the market for a mortgage, or at least notin the market for another 2 years....would you utilize over 50 percent or more and keep a running balance...pay on time to avoid fees and just keep the trade line open?? it seems like fico will go up and down over the course of months so if you are not looking to make a buy a house or car within the near future would utilizing less then 10% be a top priority??
Credit Cards offer consumer protection, float of money, convenience, and build credit for future needs.
Paying in Full does not build your credit, it does save a lot of interest. I pay in full to avoid the interest.
Establishing a history of using your credit and paying on time builds your credit
Keeping your utilization under 10% is of no use, unless, you are applying for credit. If you max out your cards for 2 years, and pay them off in time to hit the reports, your score will be the same as if you kept 10% the whole time.
If I wanted a mortgage in 2 years, I would use at least 3 cards every month and use them fully for normal expenses. I would pay in full every month before the due date to avoid interest. I might carry a balance if needed , or had a 0% rate. I would ignore utilization untill 2 months before applying, when I would prepay to get utilization under 10%. I would NEVER be late, or go over limit.
For big tickect items, they want to see that you have used credit properly.
