Use them or not?

For just about anything you want to get off your chest about credit cards.
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Dr.Mark
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Use them or not?

Postby Dr.Mark » Thu Mar 20, 2014 4:23 pm

I was just wondering whether it would be better for my credit score to actually use my credit cards once in a while or if it doesn't change anything.
And I was also wondering whether I can get an higher CL even without using the cards.
[font=Times New Roman]American Express PRG[/font] [color=green][NPSL][/color]
[font=Times New Roman]British Airways American Express[/font] [color=green][9000£][/color]
[font=Times New Roman]American Express Platinum Cashback Everyday[/font] [color=green][6000£][/color]
[font=Times New Roman]Barclaycard Platinum[/font] [color=green][16600£][/color]
[font=Times New Roman]Virgin Balance Transfer[/font] [color=green][9600£][/color]

TCL - [color=red]41200£[/color]


MemberSince99
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Postby MemberSince99 » Thu Mar 20, 2014 4:36 pm

It's only useful to your score IF you allow a balance (small as in between 1-4% ideally) report. Just using them and paying in full won't matter.


Also as far as limit, yeah, using them responsibly can only be a good thing. No one is going to punish you for that. You may be able to get a higher limit, but the natural question of any analyst is going to be "If you don't use the card now why do you need a higher limit?" so be prepared to answer that.

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Dr.Mark
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Postby Dr.Mark » Thu Mar 20, 2014 4:45 pm

Yeah, that is exactly what I was thinking. And I would't really know how to answer that. Actually, I wouldn't even know what to say even if I would be using the card, because I wouldn't be using it in full anyway...
[font=Times New Roman]American Express PRG[/font] [color=green][NPSL][/color]

[font=Times New Roman]British Airways American Express[/font] [color=green][9000£][/color]

[font=Times New Roman]American Express Platinum Cashback Everyday[/font] [color=green][6000£][/color]

[font=Times New Roman]Barclaycard Platinum[/font] [color=green][16600£][/color]

[font=Times New Roman]Virgin Balance Transfer[/font] [color=green][9600£][/color]



TCL - [color=red]41200£[/color]

MemberSince99
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Postby MemberSince99 » Thu Mar 20, 2014 4:50 pm

But even having the cards in good standing is good for your score, technically. Much better than not having them at all.


You don't need to fully use them to get an increase. Not using them at all probably won't fly though.

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Dr.Mark
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Postby Dr.Mark » Thu Mar 20, 2014 4:55 pm

I understand. You've made yourself very clear. ;)
I guess I will use my CC sometimes then, instead of using my AMEX Gold for every transaction.
Cheers buddy
[font=Times New Roman]American Express PRG[/font] [color=green][NPSL][/color]

[font=Times New Roman]British Airways American Express[/font] [color=green][9000£][/color]

[font=Times New Roman]American Express Platinum Cashback Everyday[/font] [color=green][6000£][/color]

[font=Times New Roman]Barclaycard Platinum[/font] [color=green][16600£][/color]

[font=Times New Roman]Virgin Balance Transfer[/font] [color=green][9600£][/color]



TCL - [color=red]41200£[/color]

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Vattené
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Postby Vattené » Thu Mar 20, 2014 8:01 pm

MemberSince99 wrote:You may be able to get a higher limit, but the natural question of any analyst is going to be "If you don't use the card now why do you need a higher limit?" so be prepared to answer that.


After I was approved for my Discover with a $4,200 limit Kay's randomly sent me a letter increasing my CL from $571 to $2,000. I've only used it a handful of times, the most recent being about a year ago. I am assuming they just routinely SP for monitoring purposes and, upon seeing someone is more creditworthy than when they first opened an account, increase their CL to try to entice them to use it ($571 won't get you much at a jewelry store, after all)?

May be an obvious question, but I've never requested a CLI before and I believe this is the first one I've gotten automatically. I've heard on the forum of companies auto-CLI'ing with new accounts, but this one with Kay's has always been nearly inactive.
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

MemberSince99
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Postby MemberSince99 » Thu Mar 20, 2014 9:02 pm

Yeah I would say you are right. I've gotten a few auto CLIs, though nothing for a while now. I'm not expecting to get any real soon either but hopefully someday. But good point.

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Vattené
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Postby Vattené » Thu Mar 20, 2014 11:15 pm

I would agree with your earlier point: from the lender's perspective, increasing the CL just increases their risk and why do it without a solid reason. I was just curious about my case and an effort to get a customer to use a credit line was the only thing I can come up with. I'm quite pleased with the increase. I doubt I use it (unless I need to keep a gift for my wife a secret), but the increased total CL is appreciated.
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

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tbka
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Slightly off topic...

Postby tbka » Fri Mar 21, 2014 8:51 am

Dr.Mark,

What companies do they use in Great Britain for credit reports? Do that work the same as the U.S.A.? Is it a E.U. thing? Or do they have a separate thing like hot you kelp your currency?
Capital One Platinum $500
Barclaycard Rewards $500
Wells Fargo Secured Platinum $1,000
Elan Financial Platinum $1,000


Experian 641 3/10/14
Equifax 663 3/10/14
TransUnion 631 3/10/14
Barclay 620 8/24/14
Capital One 632 8/24/14
Credit Karma 632 8/24/14

Bankruptcy till 4/18

takeshi
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Postby takeshi » Fri Mar 21, 2014 9:25 am

Dr.Mark wrote:I was just wondering whether it would be better for my credit score to actually use my credit cards once in a while or if it doesn't change anything.

Consider the usual factors that play into scoring. Utilization plays a significant role. Do all your cards report 0 balances? If so, you'd probably seem some improvement from letting one report 10% or less.

Dr.Mark wrote:And I was also wondering whether I can get an higher CL even without using the cards.

Possible but creditors vary. Some like to see a lot of usage.



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