credit cards finally paid off, to use (once a month) or not to use?

[mike00]

hello,

i havent posted on here in awhile.

 

last time i did i still had several thousand dollars in credit card debt.

i have finally (within the last month) paid these all down to a zero balance.

 

i have been told by a couple friends of mine, that it is better from my fico score to use it at least once per billing cycle. my friends, although well meaning, repeat a lot of hearsay.

 

so my question to the community here is: is there any advantage to using a credit card once per month and paying it off each month, or using it monthly and letting a small balance carry over, versus not using the card at all (emergency only)

 

i have had these cards for 6months to three years. high balances for the last 8 months or so, up until the last 2 months or so, when i was able to get them paid off.

 

I thank whoever takes the time to read this and share their knowledge with me.

Also, happy 2014!

[hegemony]

use them for all purchases but PIF every month. carrying a balance will not help your FICO scores but NOT using credit also does not help.

[Cappy]

Use them and pif if you can but before statement use a little and let it report.

 

If you don't use your card at all, it can be closed due to inactivity.

[mike00]

ok ill do that from now on then.

 

i checked my cards out and found that two of them have already had a monthly statement without any purchases. they did both have payments during these 30 day periods.

 

is this bad?

[Chupacabras]

You don't have to use all your cards every month. Use one or more cards every month, and let only one card report a balance under 1% of the limit of said card.

[Tyra]

I try to use each of my cards at least once every six months to avoid closure. That's about all you need to do. If you don't see much difference between the cards rewards you can just use a different card each month and rotate through them paying in full each month. Or if you want to get it out of the way quickly go online and use them to pay a bit of a bill like if you have 10 cards and your electric bill is $150 then pay $15 online towards the bill from each card. Or take them to the grocery store and buy one item at a time at the self checkout. Lots of easy ways to put a little spend on the cards to keep them from being closed. Only have to do it a couple times per year. Not that much fuss. Works for me.

[shifter]

Or take them to the grocery store and buy one item at a time at the self checkout.

I'd hate to be the dude behind someone at the grocery doing this, lol! but a very good idea nonetheless.

[Chupacabras]

Vending machines at work take credit cards, that's how I exercise mine every 6ish months.

[Occam]

Or take them to the grocery store and buy one item at a time at the self checkout.

I do this (but please don't do it when there's a queue line). Walmart has self-checkouts too, in case CV is reading this. I also buy a lot of $0.99 Kindle books or <$1 songs one at a time.

 

I like to use & PIF before the close monthly, but it's not necessary. If it's a card you really value I wouldn't let it go more than 2-3 months though. Occasionally people HAVE been shut down for non-use that quickly, and a pattern of regular use encourages CLIs.

 

In any case, try not to let more than 1 (possibly 2) cards report a balance. It's not a bad plan to rotate the ones that do. I try to let each report a small balance at least once in it's lifetime.

[cv91915]

 

Or take them to the grocery store and buy one item at a time at the self checkout.

I do this (but please don't do it when there's a queue line). Walmart has self-checkouts too, in case CV is reading this. I also buy a lot of $0.99 Kindle books or <$1 songs one at a time.

 

I like to use & PIF before the close monthly, but it's not necessary. If it's a card you really value I wouldn't let it go more than 2-3 months though. Occasionally people HAVE been shut down for non-use that quickly, and a pattern of regular use encourages CLIs.

 

In any case, try not to let more than 1 (possibly 2) cards report a balance. It's not a bad plan to rotate the ones that do. I try to let each report a small balance at least once in it's lifetime.

 

 

LOL

[cv91915]

You can also buy Amazon gift cards for as little as fifteen cents.

 

[SuperGurl72]

 

Or take them to the grocery store and buy one item at a time at the self checkout.

I'd hate to be the dude behind someone at the grocery doing this, lol! but a very good idea nonetheless.

 

Oh gosh me too...lol

[cv91915]

 

 

Or take them to the grocery store and buy one item at a time at the self checkout.

 

I'd hate to be the dude behind someone at the grocery doing this, lol! but a very good idea nonetheless.

Oh gosh me too...lol

You'd be one messed-up looking dude, Gurl. Edited January 1, 2014 by cv91915

[mike00]

okay so should i ocassionally on each card-

 

A) charge something and pay it off as soon as possible

charge something and pay it once that balance has a due date (after end of statement)

C) charge something and let a small balance roll over to the next month.

 

i know its not entirely known what makes up fico scores, just wondering what peoples thoughts, experiences, etc are.

 

 

ps

dont ask why " B + ) " equals when typed next to each other

Edited January 8, 2014 by mike00

[Gudziel]

But if you are only putting a small amount onto a high limit card at a time (example of vending machine) wouldn't the creditor of that line eventually lower the cards limit???

[Chupacabras]

okay so should i ocassionally on each card-

 

A) charge something and pay it off as soon as possible

charge something and pay it once that balance has a due date (after end of statement)

C) charge something and let a small balance roll over to the next month.

 

i know its not entirely known what makes up fico scores, just wondering what peoples thoughts, experiences, etc are.

 

 

ps

dont ask why " B + ) " equals when typed next to each other

Charge something once in a while and pay it off immediately. One card, reporting under 1% of it's limit when the statement cuts with all other cards reporting 0 balance. You can still use all your cards, but only let one statement cut with a balance.

 

But if you are only putting a small amount onto a high limit card at a time (example of vending machine) wouldn't the creditor of that line eventually lower the cards limit???

No, because limits aren't made up of what you spent with that creditor but how much you could spend with that creditor.

[Occam]

Use them and pif if you can but before statement use a little and let it report.

 

If you don't use your card at all, it can be closed due to inactivity.

Don't use them if you can't PIF!!

 

Yes. It almost certainly will be closed for inactivity. The only question is how long. And the rule of thumb is, the better the card, the sooner the closing (it's a corollary of Murphy's Law).

 

If you value the card, I'd use it at least every second month to be safe. Most store cards can go 6 months.

 

Charging $1 then PIFing is enough to keep a card active.

 

In terms of obtaining CLIs, upgrades, etc., it's best to use a card every month.

 

And PIF all but 1 (maybe 2) before the statements close. then PIF that one after the close. You only want one to report a balance for the best scores, but you can rotate which one reports.

 

And Mike00 - Good job!