The theory is that you should have multiple cards, but never actually use them for credit. Charge just enough to get a bill each month, and then pay the minimum on the bill. A $30 purchase does the trick nicely. Lather, rinse, repeat for a year, then bug the card-issuer for a credit line increase. Not that you'll actually use all the credit, mind you, it just looks good. Keep charging a little bit, and studiously paying on time, and you should be up to $5000 limits in a few years with a great FICO. That's a great tactic if you're just starting out...now if you're like me and have charge-offs on your credit report, forget it. Nothing will improve your score, because as soon as it begins to rise, a collection agency will re-report your old debt and make it look new so your score drops again. If you have charge-offs just keep one card for emergencies and forget about FICO until the charge-off drops from your account (seven years).
Message Edited by TheNewWorldMan on 03-25-2007 11:33 AM
