Ding for not using credit card.....really?

[firedogut]

So i pull my sisters score.  there is a 20 point difference between the transunion and equifax score.   When you look to see why the transunion is lower it says she is being dinged because of not using her credit cards and for having a student loan in which she owes 65% of the loan amount.  The student loan is 5 years old and never been late. she makes the monthly payments. 

So would it be helpful if she pays off the loan and uses the card or am i misunderstanding something.    thank again everyone.   you guys have been great. 

1. There are no recent balances on your revolving credit accounts.

   Your credit report shows no recent balances on your revolving accounts.  Your FICO score was hurt because you are not currently demonstrating active revolving credit management.

   What to do about this: You might consider moderate and responsible use of your credit cards (such as charging low balances and repaying them on time).

2. The remaining balance on your non-mortgage installment loans is too high.

   Check your installment loans to calculate your remaning balances
    

   FICO High Achievers have paid down an average of 35% of the principal on their installment loans.

   Your FICO score weighs the balances of your non-mortgage installment loans (such as auto or student loans) against the original loan amounts. In general, when you first obtain an installment loan your balance is high, and as you pay this loan down, the balance decreases.

   Keep in mind: This factor will have less of a negative impact on your FICO score as you pay down your installment loans and the total balance decreases.

[smallfry]

The ding for the student loan is very small and once paid down/off she will see little to no score improvement. She should try to leave a small balance on one of her credit cards when the statement cuts then pay it all off before the full amount is due.

[MarineVietVet]

As far as The remaining balance on your non-mortgage installment loans is too high. I get this every time I pull my score. I just ignore it.

From a BK years ago to:
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802

You can do the same thing with hard work

Credit Scoring 101
Common Abbreviations
Frequently Requested Threads
Credit Problems Which Is Worse?
Whats In Your FICO Score

[fused]

In the past, I've lost points for having all of my revolving accounts reporting a $0 balance. To avoid this, I keep a tiny balance one of my CCs that has a CL below 25K.

[MattH]

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@MarineVietVet wrote:

As far as The remaining balance on your non-mortgage installment loans is too high. I get this every time I pull my score. I just ignore it.

From a BK years ago to:
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802

You can do the same thing with hard work

Credit Scoring 101
Common Abbreviations
Frequently Requested Threads
Credit Problems Which Is Worse?
Whats In Your FICO Score

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Original poster doesn't give the score; if it's fairly high then even very small dings get mentioned in the comments simply because there is so little negative to be said. My scores bounce around the 800 level, and it's clear that 800 represents an arbitrary cutoff for such comments: 796 will usually mention either "too many revolving accounts with balances" or "total balance on your revolving accounts is too high" but 804 will say "there are no actionable negative factors."

The higher the score, the pickier FICO gets.

[fused]

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@MattH wrote:

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@MarineVietVet wrote:

As far as The remaining balance on your non-mortgage installment loans is too high. I get this every time I pull my score. I just ignore it.

From a BK years ago to:
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802

You can do the same thing with hard work

Credit Scoring 101
Common Abbreviations
Frequently Requested Threads
Credit Problems Which Is Worse?
Whats In Your FICO Score

---

Original poster doesn't give the score; if it's fairly high then even very small dings get mentioned in the comments simply because there is so little negative to be said. My scores bounce around the 800 level, and it's clear that 800 represents an arbitrary cutoff for such comments: 796 will usually mention either "too many revolving accounts with balances" or "total balance on your revolving accounts is too high" but 804 will say "there are no actionable negative factors."

The higher the score, the pickier FICO gets.

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Correct!!!!!!!

[firedogut]

transunion----659

equifax-------685

[Anonymous]

1.  How many credit card does your sister have?  She must use the cards even with $1 purchase to keep it open.

    Plus, let at least one of credit card report the balance.  Then she will have proof of activity.

    Don't forget to PIF the balance before the due date.

2.  Don't worry about loan balance, unless she can pay down half of it.

     I have a Student Loan it start with about 6k and I still have balance of about 4k. 

     Pays always on time is VERY important.

[firedogut]

this is her only card.    I also have one and so does my wife...all issued by the same credit union. the nice thing is that they still cards with 6.9% APR and don't care if you use it.   last time my wife used her card was in 2006 and the credit union said they will not close the account from inactivity. 

just seems dumb you get dinged by transuinon for not using your cards.  pay in cash or debit card and suffer the lower credit score  just seems stupid. 

[Anonymous]

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@firedogut wrote:

this is her only card.    I also have one and so does my wife...all issued by the same credit union. the nice thing is that they still cards with 6.9% APR and don't care if you use it.   last time my wife used her card was in 2006 and the credit union said they will not close the account from inactivity. 

just seems dumb you get dinged by transuinon for not using your cards.  pay in cash or debit card and suffer the lower credit score  just seems stupid. 

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Which CU is that?