Using cards versus a balance reporting

[MidnightVoice]

We all assume that we need to use our cards and allow them to report a balance so that FICO knows we have used them, then PIF.

Now, I have a gas card that I can't use very often because the gas stations moved out of town.  I use it about every 6 months when I can, and then PIF immediately (that day usually, via electronic bill pay) so I don't forget!  (I want to keep this TL open - it is over 12 years old and perfect history, albeit a measly $700 CL  ) I did this recently, and as expected, a zero balance was reported. 

BUT EQ STILL KNEW I USED THE CARD!!

I got a scorewatch alert:

Alert: An account that has been inactive for more than 3 months has become recently active

Your FICO® score  has not changed

So would using and Piffing everything to a zero balance before the report was cut be OK?  EQ would still know you used the card.

[Anonymous]

What likely happened is the CCC stopped reporting the account as active because it hadn't been used. Apparently, using it once every other month--even with an immediate PIF--is sufficient for the creditor to report the account as active, albeit with a zero balance.

[haulingthescoreup]

I have found that I don't need to let a card report a balance to make the CRA's and FICO aware that it's being used. I think that this is being reported, and this just doesn't show on our reports.

For instance, I once briefly had a $10K balance on a card. It has shown a $0 balance, for several months before and after this happened. But the $10K appears as high balance.

I've got several cards that haven't reported a balance since last September, but they are still faithfully posting on the reports. And all of them are being used at least once a month, so the CCC's are happy.

[MidnightVoice]

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TheNewWorldMan wrote:
What likely happened is the CCC stopped reporting the account as active because it hadn't been used. Apparently, using it once every other month--even with an immediate PIF--is sufficient for the creditor to report the account as active, albeit with a zero balance.

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I talked to them and they do not declare it inactive for 12 months.  So I use it about every 4 months to be on the safe side

[MidnightVoice]

As pizza explained elshere, the date of last payment will be updated, even if you PIF before the closing date.

Hence FICO will know the card has been active.

So one could have all cards reporting zero balance, and all showing recent activity

[smallfry]

Begs the question why some people are penalized for letting no accounts report a balance while others seem to score higher when all cards report a zero balance. We playing whack a mole?

[MidnightVoice]

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smallfry wrote:
Begs the question why some people are penalized for letting no accounts report a balance while others seem to score higher when all cards report a zero balance. We playing whack a mole?

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Once I get the hang of Amex's peculiar reporting schedule I will probably tru the zero throughout test 

[haulingthescoreup]

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@MidnightVoice wrote:

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@smallfry wrote:
Begs the question why some people are penalized for letting no accounts report a balance while others seem to score higher when all cards report a zero balance. We playing whack a mole?

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Once I get the hang of Amex's peculiar reporting schedule I will probably tru the zero throughout test

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TU liked it when I inadvertently had all accounts at $0, courtesy of their unwillingness to update.

[Anonymous]

Please report back after you try this.  An interesting experiment!

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MidnightVoice wrote:

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smallfry wrote:
Begs the question why some people are penalized for letting no accounts report a balance while others seem to score higher when all cards report a zero balance. We playing whack a mole?

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Once I get the hang of Amex's peculiar reporting schedule I will probably tru the zero throughout test 

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Message Edited by rebuilder on 04-30-2008 05:40 AM