Question
MY UNUSED CREDIT CARD ?
I HAVE A CREDIT CARD THAT I KEEP FOR EMERGENCIES ONLY. IN THE PAST I HAD RACKED UP DEBT ON TILL I THOUGHT THAT I COULDN'T PAY IT OFF. WELL ONE YEAR I WAS DOING GOOD AND PAID OFF THE WHOLE DEBT OF MY CREDIT CARD. I PAID IT OFF FROM THE FALL OF 2006 - SPRING OF 2007. I WAS FINALLY GLAD TO MAKE THAT LAST PAYMENT TO EASE UP MONEY SO I HAD SOME FOR THINGS I MIGHT NEED ON THE SIDE. THIS HAPPENS TO BE A CAPITOL ONE CARD. HOWEVER THEY DO CHARGE ME A YEARLY FEE AT THE END OF THE YEAR FOR HAVING THE ACCOUNT WITH THEM. MY MOM TOLD ME THAT BY NOT USING MY CREDIT CARD AFTER THIS TIME THAT MY FICO SCORE WILL BE AFFECTED. SHE SAYS THAT I SHOULD SPEND MAYBE $25 A MONTH ON IT TO KEEP MY SCORE UP. IN MY OPINION I DON'T SEE OR UNDERSTAND WHY MY FICO SCORE WOULD BE AFFECTED SINCE I WAS IN DEBT TO CAPITOL ONE AND PAID IT OFF. I THOUGHT THAT WAS THE WHOLE POINT, GET A CREDIT CARD AND SPEND MONEY AND THEN EVENTUALLY PAY IT OFF AND BE IN GOOD STANDINGS WITH THE COMPANY AND YOUR CREDIT SCORE. MAYBE I DON'T UNDERSTAND EVERYTHING ABOUT CREDIT, BUT TOO ME IF SOMEONE CAN FADE AWAY FROM ATTEMPTING TO BEING FRUGAL THAT MAYBE THEY'D BE IN GOOD STANDING WITH THEIR CREDIT. I JUST DON'T SEE HOW SPENDING UPON SPENDING REALLY PROVES SOMEONE'S FINANCIAL WORTH AT ALL. WITH FINANCES PEOPLE ARE AFFECTED IN THEIR DAILY LIVES A GREAT DEAL. THIS IS JUST ONE SUBJECT THAT I'M LOST IN. LEAVE COMMENTS AND IF YOU'RE AN EXPERT GIVE ME SOME ADVICE.
4 months ago - 3 answers
Best Answer
Chosen by Asker
"My Take On It" and "Michael T" have given good responses. Any bill that you pay over time will establish a credit history. This would include cell phone (not the pay-as-you-go phones, but a regular plan), utilities (e.g. electric, gas), school loans, etc. So a credit card is not the only way to establish a credit payment history. Make sure you get a copy of your credit report from here: www ... "This central site allows you to request a free credit file disclosure, commonly called a credit report, once every 12 months from each of the nationwide consumer credit reporting companies: Equifax, Experian and TransUnion. "AnnualCreditReport.com is the official site to help consumers to obtain their free credit report." This will allow you to see what is being reported. If you do not have any bill payment history being reported, then do use your card periodically to insure a credit payment history.
Source(s)
by Dan S
4 months ago
Asker's Rating: 
Other Answers
Your mom is right. By not spending wisely on the card...say $25 or $50 for example, and paying that off or paying the min due one month and then paying it off, you are not building your credit. You have to USE your credit in order to maintain your FICO score.
by My Take on It- 4 months ago
First, please don't use caps. Your credit score is based on the amount of on-time payments, default or missed payments, debt to available credit ratios, and a few other things. If you don't use the credit card, your history (on-time payments) age and becomes less important causing your credit score to drop. Your credit score is based on your history of paying your debt and the more recent the history, the more important it is to calculating your credit score.. By using your credit card monthly, another good mark is recorded on your credit report making your credit score rise. Without this history, potential lenders would not know if you would likely pay off a loan on time. It is best to use the card monthly (doesn't matter how much) and pay it off fully by the due date (interest will not be charged if paid off fully). This will continuously add good marks to your credit report causing your credit score to rise.
by Michael T- 4 months ago