Non use credit card vs 0% credit utilization

Anonymous · ‎04-13-2018

I have about 10 credit card. my score is 750. i want to improve to 800.

Here is my question:

Do i need to get $1 balance before closing date on all of my credit card in order improve my score? Or can i just get $1 balance, the rest i just dont use them. will my score still improve that way?

My rarely spend things in credit card. I wanna know if i just use one credit card, the rest i dont use, will it impact negatively on my score?

Anonymous · ‎04-13-2018

No it will not but make sure you report at least $5 on that one account to the statement every month. What you will be risking are card closures due to inactivity, make sure you make at least one charge to the rest of the cards every 6 months or so to avoid that.

Anonymous · ‎04-13-2018

Nice response by Oldman.

Can you tell us a bit more why you spend so little on credit cards? Is that because you spend almost no money period -- whether by cash, debit cards, or credit cards? (Good for you you, if true.) Or is it because you confine your spending to debit cards?

Anonymous · ‎04-13-2018

I have so many credit card, it's hard to keep track of it (i'm afraid using over 30% credit utilization). So i just use my debit card to be sure.

So here is my strategy

Put $5 balance before closed date on 1 credit card every month,

for the rest of other cards, just put $1 on each every 3 month (to avoid closure) (which is the safe period, 6 months or 3 months)

Is this good way to boost my score?

I try to do research on inactivity card that will affect your scores.

Anonymous · ‎04-13-2018

Are any of those store cards? Or are they all major credit cards? (A major CC has a Discover, Visa, Mastercard, or Amex logo on it.)

Do any of those cards charge annual fees?

Anonymous · ‎04-13-2018

You don't need 10 cards to build your credit profile and since you feel overwhelmed and won't be using most, you should close some just to make your life easier and less stressful at the very least. List all your cards and limits and we will help you narrow things down to 5 or 6, perhaps then you would feel more comfortable using and managing them properly to take full advantage of the perks and rewards while building your profile just the same.

Anonymous · ‎04-13-2018

Quick question

What if i just put 50 cent balance before closed date on all of my credit card, will it help my scores?

this way i dont have to remember which card should i use every 3 months?

Thanks

Anonymous · ‎04-14-2018

50 cents only on all cards each month is a bad plan. There are a number of reasons for that.

If you do what OldMan just suggested (list your cards for us) we'll be able to help you develop an easy plan to keep your cards active while you build a good score.

We'll need to know which of your cards are the two oldest and when they were opened. Whether any of them are store cards. Whether any have annual fees. Plus the stuff OldMan asked.

Anonymous · ‎05-07-2018

My FICO score is actually only 720. I just checked with AMEX.

Here is my card

SPG AMEX - open 11/17 - 10k CL

BOA Visa - open 09/17 - 3k CL

My hubby

SPG Amex - open 11/17 - 1k CL

BOA Visa - open 08/16 - 2k CL

Capital One Platinum - open 08/16 - 4k CL

I'm thinking about getting one more card like citi double cash or discover it to get the optimal AZEO method (3+ card). But do you think should i get 5 cards total in order to build good foundation?

My main goal is to get mortgage in 2 year, so i want my score to go up close to 800. Do i need to do the azeo method every month for 2 years? I barely use my credit card because i travel a lot in asia.

Last question, i know that if i dont use my cards for 6 months, my score could get ding. So if I reload amazon gift card balance 0.50 for every 5 month and pay it off right away. does this strategy help?

Anonymous · ‎05-07-2018

@Anonymous
I'm thinking about getting one more card like citi double cash or discover it to get the optimal AZEO method (3+ card). But do you think should i get 5 cards total in order to build good foundation?

My main goal is to get mortgage in 2 year, so i want my score to go up close to 800. Do i need to do the azeo method every month for 2 years? I barely use my credit card because i travel a lot in asia.

Last question, i know that if i dont use my cards for 6 months, my score could get ding. So if I reload amazon gift card balance 0.50 for every 5 month and pay it off right away. does this strategy help?

It's possible to achieve an 800+ score with 1 credit card, so acquiring 3 or 5 is not a necessity. If it's something you feel would benefit you, it can be considered.

AZEO with respect to scoring only matters for a single point in time. If you're targeting a time 24 months from now, it doesn't matter if you go 23 months without AZEO and then go to AZEO in the final month or if you're at AZEO the entire time. At Month 24 your score will be exactly the same... it's just that with AZEO in place all along the way your score will be a little better all along the way rather than bumping up in the final month before your app.

Not using a card or cards for 6 months does not give your score a ding. All it can do is possibly cause your lender to close your card down on you and that credit line loss could in turn cause your score to drop... but it also may have no impact at all. Putting a single swipe on CC every 3-5 months would be a best practice to avoid potential AA. Whether that's a gift card or simply a purchase for a small item like a Red Bull that you'd normally buy anyway, it doesn't matter.