- Centurion Member
- Posts: 466
- Joined: Sat Apr 13, 2013 7:49 pm
- Location: Colorado, USA
As with everything related to credit...YMMV. Each person is different. Factors that can influence your scores include (but not limited to) AAofA, the thickness/thinness of your file, your total credit history, the number of open and closed accounts, number of inquiries, balances on cards...yada yada...you get the picture.
Not everyone loses points when carrying a balance on a card or cards. Some folks, such as me, gain points. Yup, I get point increases. I have several cards that report a balance (5-6 of them) which I did on purpose. Rather than losing points, I went over 800 in scores...and maintained over 800 now for several months. I purposely carried a larger than normal balance on my Discover card and my scores have gone UP each month that I've carried a balance there. I'll be paying the balance off this month, so it will be interesting to see the result. Same thing with a couple other cards. I also keep my utilization per card at under 10% and my total utilization is under 5%. So I'm sure that's a factor as well.
But....I've also had scores go up be reducing balances as well. There really is no truth, no "one world order" to the world of credit. I think part of my success as noted above is because I have a very thick file, going back over 20 years on my current reports and over 40 years total -- and while that doesn't show up on a credit report, my gut feeling is that, somewhere in their internal files, notations such as lengthy history are documented somewhere. Both good and bad history.
The times where I've carried only 1 balance and less than 10% was a time that I lost points. Again, no real explanation for that, given conventional wisdom. And the one truth that I do hold dear....scores really don't matter on a day to day basis. It's only when one is applying for new credit that they really mean something.
How one uses their cards is really up to each individual. Whatever meets your needs for the cards you have. Some of my cards I use more frequently than others. But all of them get some usage over the course of several months. I don't feel the need to use more than 2-3 per month in most cases. Each one served a need when I applied for them. Some of those needs have changed, so I'll probably cut some of them loose, or combine them into one account (such as closing my WF Platinum and moving the CL to the Propel 365 card).
Retired, and in the process of retiring cards!
EQ = 846 EX=828 TU = 836 as of 02/2016