• We’re currently investigating an issue related to the forum theme and styling that is impacting page layout and visual formatting. The problem has been identified, and we are actively working on a resolution. There is no impact to user data or functionality, this is strictly a front-end display issue. We’ll post an update once the fix has been deployed. Thanks for your patience while we get this sorted.

Credit card gurus I need your help

J

Jpark

Platinum Member
I've searched all the thousands of questions about cc's asked on this forum, and never really got the answer I was looking for ( or overlooked it).

I have 3 credit cards, 2 of which I use all the time and pay the balance off before it's due. The other which has a high limit I keep for emergencies, but never use it.


My questions:
Is it better (for credit scores) to just pay the monthly minimum payments on your cc's instead of paying them completely off?

If you don't use a credit card does that hurt your credit score?

And finally, does the number of cards you have effect your score in anyway?


Sorry if these have been asked and answered before, I did a search and didn't see anything.
 
Use them a little, pay em off quickly. That shows activity, which is good, and responsibility, which is better.
Not using wont hurt you. Only using it poorly.
Number of cards is irrelavent. Only poor use hurts you.

EDIT: For reference, my score is 750 on the 850 scale. (Which some people say is a BS scale, but whatever.)

Have never had a car loan or mortgage.
 
Is it better (for credit scores) to just pay the monthly minimum payments on your cc's instead of paying them completely off? -- no it doesn't help you at all.

If you don't use a credit card does that hurt your credit score? -- It won't hurt you as in be penalized because you don't have a card, but responsible use of a card would help.

Not so sure on the last one but I'm leaning on no, as long as they are all used responsibly.

Using them responsibly is key.
 
The number of cards doesn't matter directly, but the amount of "open credit" you have is taken into consideration by lenders. If you have too much open credit, that isn't usually smiled upon.

 
The main factor is utilization. Number of credit cards doesn't matter, however AGE of credit cards matters and total open credit also matters. Some lenders will be suspicious of new accounts as it will show them that you have a need for credit (this is actually based off the # of "hard" inquiries). As far as balances, its good to keep at least one card completely paid off and overall utilization below 35%. If you do pay off cards, don't make ridiculously high payments to do that. Slowly increase your monthly payment. High payments to cards over a short period of time is actually a BAD thing when it comes to creditors eyes.

HTH,

Matt
 
You must log in or register to reply here.

TRENDING THREADS

Back
Top