What Is a FICO Score and How Does It Affect Your Mortgage Loan
Question
Credit Cards use on your credit score?
I have 2 credit cards, with limits of about 10,000. each. I have been keeping a 'small' balance on them for a few years now. my newest cc I got was in 2002, so I've had them both for a while now. Since the recent 'cc interest rate hike' my interest went up to 19.99% so I immediately paid them off and really do not want to use them anymore now that the interest is so high. So here is my question.... 1. Will it affect my score negatively to stop using them at all? 2. Or should I use them but only in small amounts and pay them in full every month? I've heard it will hurt my score to not use them and I've also heard it won't, I'm just not sure which one is true? Just, FYI. I did check my fico score and it said 805, I've never been late on any cc, car payment, mortgage, etc. so I know my new 'interest' rate is based on the 'economy' vs. my credit score. They both bumped up my limit though, go figure? Haven't had any inquires into my credit in a few years which was the car I purchased from my bank in '05. No new credit cards, or loans. So what is the real story on how I'm suppose to handle my cc's now? Thanks in advance for the info.
10 months ago - 3 answers
Best Answer
Chosen by Asker
Your score is based on activity, so it won't really hurt you by not using them, but it won't help you either. However, after a few months of non-use the creditor may decide to close out your account due to inactivity, and that could hurt your score. Because you would loose that credit line and the credit age that account brought. As long as you use each of the cards at least every couple of months you should be fine. Just make some purchases on them, and pay it off to avoid the interest. Now, you don't want to go over 30% usage, but with credit limits of 10K each unless you have a lot of expenses I don't see you going anywhere near that.
by OC1999
10 months ago
Asker's Rating: 
Other Answers
Keep them open -make a small purchase every few months and pay it off. That's all it takes. You do not need to carry a balance to "build credit."
by src50- 10 months ago
keep them open,maybe use once in a while. they like to see you have avaliable credit. congrats on a great credit history.
by Bill K- 10 months ago