Cre wrote:What is "recon"?
Reconditioning? Reconnaissance? What is being conditioned? What is being investigated?
"Reconsideration". He applied, they said no or maybe, he called and asked them to reconsider. That's works when the reason for denial is something that you can explain or fix, like they can't verify identity or income or some negative you can say "it's wrong!".
I'm also very confused about this:
Everyone told me that to get excellent credit, one must borrow and pay it back. The more you borrow and pay back, the more history you have in demonstrating your likelihood to pay back.
OK then. So I get this card and charge a whole bunch on it. If I pay it off before the statement cuts, then the balance reported will be low or zero.
If that is the case, how does that prove to the CRA's that I have a history of borrowing and paying back?
I have no near term foreseeable need for a home loan. I'm just trying to get develop more credit history.
I don't get how "low utilization" builds credit history. How can the CRA's know that I will pay back what I owe, if I never owe anything?
For credit cards and other revolving loans, what matters is the history that you pay what you've agreed to pay. The actual dollar figures are't terribly important. Utilization is important because it shows that you're not running up huge amounts of debt and seeking more credit (quite likely, because you want to borrow money to pay the original loans back...). Actual dollar numbers are important to lenders, which is why they ask for your income, your housing payment, etc, so they can figure out how much you can afford to spend.
It is important that accounts report balances once in a while (and at least one should always), so that account doesn't look dormant. But big balances look bad. Also, remember that FICO and most other scoring sytems do not have any memory. If you have a huge balance this month, your score will take hit, but when you pay it off, it recovers, with no lingering effect.