Improving score - Keeping a credit line open

[NathanBrazil]

My mean score is about 680.  I'm doing everything I can to improve my score.  I'm at a point where I can basically pay off all my debt by Septemeber this year. 

I've been told that you need to continue to use your credit.  The pct. that high achievers use is about 7% of total balances.  That would be about 1700 for me.

1  Should I use the cards at all?

2. Do I use them for only small purchases?

3. Should I keep the balance of all my credit around that 7% mark?

4. Finally.  I've been told that they are going to close my credit line if I know longer use it after 12 months.

I spoke to customer service and they informed me any and all uses of the line, would force the bank to pull an inquiry.  The line is with bofa and only 2000, but I'd like to keep it open if possible.  Is it worth it?

TIA

[cobaltnv]

Hi Nathan, welcome to the forums. For the best Fico scores the % utilization on your credit cards should be under 9% (some say 7%). The key here is the word under. What you want is between 0 and 9% of your credit limit in use. My utilization is almost always well below 1%.

In order to keep cards active you should use each one every couple of months for something small then pay it in full right away.  There is no need to keep a balance on a card (i.e. avoid paying interest).

[NathanBrazil]

Thanks for your prompt, helpful advice.  I will definitely follow it.

Should I keep the credit line open?  Seems a hassle to keep it open.

Quite honestly, the negative attitude I was given by the bofa customer service, actually makes me want to close that line.

I'd hate to have them pull an inquiry just because I looked at someone funny or smelled bad.

TIA

[cobaltnv]

Nathan,

I am a bit confused about the 2000 line with BOA. Is this a credit card or a line of credit? If it is a line of credit do you need it for something? Why do you have it if you are not sure you want it?

   I am not sure how a LOC appears on a credit report if it is as an installment loan it may be helping you. Do you have any installment loans (car, student loan, etc) on your report?

Sorry for all the question, but this will make it easier for me (or someone) to offer better advice.

Cheers 

[NathanBrazil]

It is a very old line of credit.  It was up to about 20,000 and was reduced about 4 years ago when I got into serious financial difficulty.  I have one 30 day late on this account about 3.5 years ago on this account.  I have 3 late pays ( not 30 days ) within the last 12 months.  This was caused by my autopay being short.  My late was basically 4$ 3 months in a row.

It also has some benefit so far as length of open credit.

I don't have to keep the line. I would only want to keep it if it helped my credit in some way.

Right now I have a car loan with a balance of about 9000.  This should be paid off by Sep. this year as well all my credit card debt.

Ask away.  I'm grateful for all the help.

TIA

[Junejer]

Will the INQ be a hard or soft?

[NathanBrazil]

I got the feeling from the way the she communicated to me that it would be a hard inquiry.

[Junejer]

Not sure that it's worth the hard. You have to weigh that. If they are going to hard you every time for any usage, I would just let it close. for inactivity. What does the "current status" say? If it's positive, then I would let it go for inactivity. But, this is just one man's opinion.

[NathanBrazil]

Thanks.  That is probably what I'm going to do.  It's just a little frustrating to lose a credit line after trying very hard to improve my credit over these last 4 years.

[NathanBrazil]

Thanks for taking the time to respond. 

Did you have any additional thoughts?

TIA