Should I be using credit cards that have a $0 balance? Credit Card Usage

[Anonymous]

I have about 7 credit cards in my name that show up on my credit report... All of them have a $0 balance except for 1 which is my Navy Federal rewards credit card. I charge almost everything to this card and then pay it off in FULL before the end of the billing cycle. 

The other 6 cards I don't use ever. Now I know that I shouldn't close them because some of them are old... but should I be using each card once a month just to keep them active? 

I know this probably is an amateur question but I've heard a couple of different viewpoints on this... One is don't use them if you don't need to, and the other is that you should use them so they keep reporting your payments. Although on my credit report they are all green/'ok' even in the months where I didn't make a payment because I had a zero balance. I don't know if using them more would boost my score... currently scores are TU 754, EX 726 (there's an error on this one that I've disputed), and EQ 763. 

The only negatives I have on my report is 1 payment that was 30 days late back in 2008 when I totally forgot I had used the card. Duh! Totally my fault. Have send them a GW letter in hopes of it getting removed.

I think my scores are a little low because primarily I only have credit cards on there. I had a car loan that I paid off and closed about a year ago. There just isn't much variation in types of accounts on my report because there is no need for them. I don't need to buy a car anytime soon, although we are hoping to purchase a home at the end of the year. 

Any other tips on how to boost? Should I apply for higher limits?

Thanks y'all!

[AndySoCal]

I would use your other  cards about twice a year to keep them active. Also, to keep them fully factored into your score. Yes you can get high scores with credit cards only, See my signature.

[Anonymous]

Thanks! My goal is to break into the 800's this year. I'll start using my other cards occassionaly. So what else can I do with just CCs to boost my score? I don't carry balances so I have a 0% utilization usually... and like I said 7 cards... Should I get more? Request for higher limits? Do nothing and wait?

[webhopper]

Hi and welcome to MyFICO Community Forums!

In general, you should use the cards once every few months, just to show activity. If you don't use them, you risk having them closed for inactivity.  A lot of folks have a recurring bill billed to each card and then pay before the statement cuts.

[myjourney]

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@Anonymous wrote:

Thanks! My goal is to break into the 800's this year. I'll start using my other cards occassionaly. So what else can I do with just CCs to boost my score? I don't carry balances so I have a 0% utilization usually... and like I said 7 cards... Should I get more? Request for higher limits? Do nothing and wait?

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Welcome to the forum 

Let one card report a balance every month 1-9% for best scores performance

Like the other poster stated use the rest of your cards every now and then just so they don't get closed.. Buy some gum, gas anything small and just pay off. 

Most CC companies state that in order to keep the cards open you must use at least 2 twice a year I like to go every 4 months to be safe 

[Anonymous]

Thanks everyone for the advice and being so welcoming! I am trying to maximize my credit score and of course have heard different theories about using cards vs. not using cards. Great advice, I'll start using and see if I notice any changes. I am signed up for credit monitoring and check my 3 scores every few days. 

[myjourney]

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@Anonymous wrote:

Thanks everyone for the advice and being so welcoming! I am trying to maximize my credit score and of course have heard different theories about using cards vs. not using cards. Great advice, I'll start using and see if I notice any changes. I am signed up for credit monitoring and check my 3 scores every few days. 

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Best wishes

[HiLine]

Welcome to the forums!

Sounds like we have another score chaser here. Best of luck with your goal. Like others have said, you want to use each card once every few months to avoid closure due to inactivity. When you need to maximize your score in a short time window, only let one card report a balance which is small in that window.

[webhopper]

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@Anonymous wrote:

Thanks everyone for the advice and being so welcoming! I am trying to maximize my credit score and of course have heard different theories about using cards vs. not using cards. Great advice, I'll start using and see if I notice any changes. I am signed up for credit monitoring and check my 3 scores every few days. 

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This forum is unique in that we work very hard to aspire to a community that is friendly, respectful and supportive at all time, even if there are disagreements.

I think you'll find this to be the case as you spend more time within the forum

This place has been a valuable resource to many of us here, and a lot of folks are helpful because they are "paying it forward" from the advice they have received here.

[Anonymous]

Yes I would definitely consider myself a score chaser!! Thanks HiLine and webhopper. I had signed up for another finance type forum and haven't found it to be nearly as helpful as this one. I spend lots of time browsing through here looking for tips.

I am currently doing a major credit overhaul for my husband. His scores are poor and in the mid-500s due to a pretty bad divorce and some unauthorized usage. I'm sure I will be seeking help for that at some point! I am new to credit repair as I have always made an effort to be very careful with my own credit. I have learned a lot so far and am waiting for the first round of validation to come back.

Our goal is to buy a house in the Spring of 2014. I am hoping to get my scores in the 800s and his in the 700s. Needless to say I will be frequenting these boards until then and will always try to pitch in some advice when I can.

Thanks again!