Insp. by another thread... Paying off CCs

[ziggystardust]

I have one CC left to pay off. Now I have 1 other CC that I paid off a while ago but never cancelled b/c it was my first CC ever and wanted the better credit rating. (I made the mistake of cancelling a few other cards - not knowing I was hurting my score not helping it)

Now this card has $0 on it, and has for a while. SHould I be using this card in order to keep it active and thus improving my credit score?

Thanks

 

[dvcgirl]

I have one CC left to pay off. Now I have 1 other CC that I paid off a while ago but never cancelled b/c it was my first CC ever and wanted the better credit rating. (I made the mistake of cancelling a few other cards - not knowing I was hurting my score not helping it)

Now this card has $0 on it, and has for a while. SHould I be using this card in order to keep it active and thus improving my credit score?

Thanks[/QUOTE

Yes, I'd use it occasionally and pay it off at the end of each month. Closing the account can actually hurt you....which is sort of messed up if you think about it. But, yes, if you use that other card and stick the money aside and be sure to pay it off, it will definitely help you! I was listening to Clark Howard on the radio yesterday and a caller had this exact question.....and he told them to not close the accounts, but to use them sparingly. Good luck!

 

[DiznEeyore]

It's always been my understanding that credit scores can quite literally fluctuate from day-to-day. And there are people who live just fine without any credit cards. How does this affect their credit scores? Those scores can't simply be based on revolving consumer debt, can they?

Wouldn't it be reasonable to expect that even if you closed your longest-standing cc, that your credit score would "rebound" after a time, as long as all your other bills (mortgage, car payment, whatever) stayed current?

I'm curious about this, esp. since financial gurus such as David Bach suggest that you close your credit cards after you pay them off (he calls it "DOLP" -- dead on last payment).

 

[chesirechik]

The people living without credit cards likely have a very low aka negative credit score. I know a couple people who are in their late 20's who never got into the credit card trap, paid everything in cash, etc. and now can't get car loans or approved for mortgages. Or if they do it is at very high rates because they are considered a financial risk. It's a fine line.

Our credit system is really screwed up IMHO.

 

[can'twait]

I would get rid of them all except for the last one. I don't care what anybody says, you may need it for an emergency (NOT shoes ) or convenience while traveling (for renting a car, or to not have to carry cash, as long as you can stick to a budget). I think using it for small purchases once in a while as long as you never maintain a balance will help you. I have heard that part of what they look at is how much credit you have vs how much of it you use. If you have a credit line of $10K and your balance is $9,985, that's not good. If you have a credit line of $10K but you never carry a balance, that's good!

Good luck.

 

[ziggystardust]

you may need it for an emergency (NOT shoes )

wow you recognized me

 

[CajunDixie]

Now this card has $0 on it, and has for a while. SHould I be using this card in order to keep it active and thus improving my credit score?

It's recommended that you charge no more than 10% of your CL (credit limit) and then pay it in full. Do this every 3 months to get the scoring high on this account. This will show you can handle having the opportunity to charge XXX$ but you are smart enough to only charge 10% of the available credit and you are responsible enough to pay it when it in full when it is due.

 

[foofanella]

sitting empty, also make you risky - You have POTENTIAL debt - so be careful. In other words, lenders will look to see if you get into a bind, and run up all those "empty" cards, will be be insolvent?