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Tons_of_Debt wrote:It's not good just to let credit sit... you should be using once every month or once every other month, make sure the statement hits with less than 10% utilizationQuestion: Why is it not good to let credit sit?Besides the fact that some companies might close or lower cl's.Is it that FICO likes to see 1-9% UTL not 0% UTL?I don't plan on using my credit unless I seriously need to. I'm to afraid to use credit now (you never know, especially how the economy is nowadays) and I only plan to use credit during emergencies if need be.I only basically need credit for rebuilding not for use.v/rJShidell
JShidell wrote:
Tons_of_Debt wrote:It's not good just to let credit sit... you should be using once every month or once every other month, make sure the statement hits with less than 10% utilizationQuestion: Why is it not good to let credit sit?Besides the fact that some companies might close or lower cl's.Is it that FICO likes to see 1-9% UTL not 0% UTL?I don't plan on using my credit unless I seriously need to. I'm to afraid to use credit now (you never know, especially how the economy is nowadays) and I only plan to use credit during emergencies if need be.I only basically need credit for rebuilding not for use.v/rJShidell
JShidell wrote:See that is what i'm not understanding. People often say PIF, in which I totally agree.
What I don't understand is what is the difference (besides what you mentioned as paper trail) between Paying In Full to not using your credit at all? It will still show a 0 balance in the end correct?
Correct me if i'm wrong but FICO does not care if you use your credit or not, they don't track how often you use it. They just calculate how much credit you have against how much you have used, your utl. So if you use your credit, PIF before the companies report its going to reflect a 0 balance.
Maybe i'm looking at it all the wrong way. But to me paying in full on an account to reflect a 0 balance is pretty much the same as not using your credit and showing a 0 balance. As far as scoring goes, am I looking at this wrong?I guess the underlying question is, would FICO rather see a small utilization rather then a 0 utilization?I guess I can test this out by using the score simulator.
v/r
JShidell