AZEO - Use or don't use cards?

[Jazee]

If I'm practicing the All Zero balance Except one method to optimize score, does it make a difference if I don't use the zero balance cards at all versus doing at least one small charge a month on them?  I assume keep average balance on the zero balance cards to a minimum is preferred if it is preferred to use the card at least once a month?  I thought I've read some institutions may lower credit limit or close account for non-usage?  Is that true and is it triggered by low/no usage or a combination of low/no usage and increate in total credit limit across all reported accoutns?

[coldfusion]

AZEO makes it harder for an issuer to know what you're up to with regard to other issuers, but they sure know whether or not you are using their own cards. 

Different issuers have different standards but in general pretty much all of them will either CLD or close out cards that aren't being used, the primary differentiator is how long they will tolerate a card going unused before taking action.   That doesn't mean that you have to put a charge on every card every month but you don't want to go much more than a few months between uses if you can reasonably help it. 

[SouthJamaica]

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@Jazee wrote:

If I'm practicing the All Zero balance Except one method to optimize score, does it make a difference if I don't use the zero balance cards at all versus doing at least one small charge a month on them?  I assume keep average balance on the zero balance cards to a minimum is preferred if it is preferred to use the card at least once a month?  I thought I've read some institutions may lower credit limit or close account for non-usage?  Is that true and is it triggered by low/no usage or a combination of low/no usage and increate in total credit limit across all reported accoutns?

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1. For AZEO and other FICO score "utilization" questions it doesn't actually matter how much you "utilize" the account; it just matters what balance is reported.

2. If you don't use the card  now and then the account will probably wind up being closed for non-use.

[Jazee]

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@SouthJamaica wrote:

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1. For AZEO and other FICO score "utilization" questions it doesn't actually matter how much you "utilize" the account; it just matters what balance is reported.

So maximum balance on the card between reporting dates is always completely irrelevant to the credit score?  I suppose that is the case since they don't have access to the data on the card in between reporting, only the issuing bank does. Then the question morphs into, as far as credit line increase requests, do some card issuers factor in how large of a balance you've been able to carry while still paying the balance off every month?

[SouthJamaica]

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@Jazee wrote:

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@SouthJamaica wrote:

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1. For AZEO and other FICO score "utilization" questions it doesn't actually matter how much you "utilize" the account; it just matters what balance is reported.

So maximum balance on the card between reporting dates is always completely irrelevant to the credit score?  I suppose that is the case since they don't have access to the data on the card in between reporting, only the issuing bank does. Then the question morphs into, as far as credit line increase requests, do some card issuers factor in how large of a balance you've been able to carry while still paying the balance off every month?

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Yes, the balance between reporting dates is completely irrelevant to the FICO scores.

As far as CLI's are concerned, yes many issuers will look at your intra-cycle spend.  But their underwriting criteria for CLI's differs.  Some will see very high usage as a reason to give you an increase.  Others will see it as a sign of financial distress.  This forum is full of discussions of the CLI culture of different lenders.  Probably, even within the same issuers, different analysts will see things differently.

[Msafiri732]

From my own experience, use of cards and keeping them open differs greatly from bank to bank. I have a couple Capital One cards and I remember when the oldest one hit the two year mark with no blemishes on payment record they told me I could use the card once a year and to be sure to make the payment on time and the card will remain open. I had an Amex card closed after lying dormant for about ten months and when I called them to inquire they said I was welcome to re-apply....I said no thanks and hanged up. And even if you resort to making one small transaction a month to keep the card active, you can forget line of credit increase.

[SouthJamaica]

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@Msafiri732 wrote:

From my own experience, use of cards and keeping them open differs greatly from bank to bank. I have a couple Capital One cards and I remember when the oldest one hit the two year mark with no blemishes on payment record they told me I could use the card once a year and to be sure to make the payment on time and the card will remain open. I had an Amex card closed after lying dormant for about ten months and when I called them to inquire they said I was welcome to re-apply....I said no thanks and hanged up. And even if you resort to making one small transaction a month to keep the card active, you can forget line of credit increase.

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In most cases you're right, but these things vary.  A few years ago, when there was a great deal of discussion in this forum about Discover's CLI policy (or lack thereof) many folks observed that they were more likely to get CLI's when they didn't use the card -- i.e. using the 'playing hard to get' gambit.