Author Topic: Should I use all of my credit cards at least once a month?  (Read 18818 times)

Offline compddd

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Should I use all of my credit cards at least once a month?
« on: November 14, 2011, 09:54:00 PM »
and then pay them off asap? Will it get my credit score higher?

Offline joeb1

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Re: Should I use all of my credit cards at least once a month?
« Reply #1 on: November 14, 2011, 09:55:36 PM »
its a great idea to at least use each card once

Offline AJK

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Re: Should I use all of my credit cards at least once a month?
« Reply #2 on: November 14, 2011, 10:26:04 PM »
Theoretically, a 0% util may not be as good as a 10% util.

But paying them off asap will do nothing for you credit score wise. The balance wont be reported the the bureaus.
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Offline compddd

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Re: Should I use all of my credit cards at least once a month?
« Reply #3 on: November 15, 2011, 12:33:43 AM »
I could of swore I saw Dan post once or twice that he recommends paying off your CCs multiple times a month.

Offline elikay

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Re: Should I use all of my credit cards at least once a month?
« Reply #4 on: November 15, 2011, 12:37:43 AM »
If you have a high utilization ratio, then absolutely yes. You should try to make sure that it does not get reported to the CBs as it will affect you score, albeit temporarily. Though you don't have to fully pay it down, as long as you bring down the number.

Offline compddd

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Re: Should I use all of my credit cards at least once a month?
« Reply #5 on: November 15, 2011, 12:45:57 AM »
I only spend about $1100 a month on my CCs, and I pay them all off every month. So I should just make sure to use each one at least once a month and then pay it off?

Offline AJK

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Re: Should I use all of my credit cards at least once a month?
« Reply #6 on: November 15, 2011, 12:46:26 AM »
I could of swore I saw Dan post once or twice that he recommends paying off your CCs multiple times a month.

He may have. I'm not sure in what context he mentioned it, but if all you are doing is spending $1.00 and then paying it off, it'll have zero effect on your credit. (It may prevent the card from being involuntarily closed for inactivity, though. But that has nothing to do with your credit score--directly anyway.)

If you have a high utilization ratio, then absolutely yes. You should try to make sure that it does not get reported to the CBs as it will affect you score, albeit temporarily. Though you don't have to fully pay it down, as long as you bring down the number.

It's been reported that having a util % above 0%, but below ~30% is better than 0%.
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Offline compddd

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Re: Should I use all of my credit cards at least once a month?
« Reply #7 on: November 15, 2011, 12:47:51 AM »
AJK I'm putting like $10-20 on each one and then using my Sapphire Preferred for everything else.

Am I wasting my time?

Offline AJK

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Re: Should I use all of my credit cards at least once a month?
« Reply #8 on: November 15, 2011, 12:49:24 AM »
That would seem (to me) to be enough to ward of any involuntary closures and avoid the 0% util "issue," though I personally don't bother with it. Too much hassle.
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Offline Cholentfresser

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Re: Should I use all of my credit cards at least once a month?
« Reply #9 on: November 15, 2011, 05:27:13 PM »
I could of swore I saw Dan post once or twice that he recommends paying off your CCs multiple times a month.
If we're talking about the same thing, i'm pretty sure Dan said to use all cards and pay them off besides for a very little amount on each card (~$1?) so then they'll be reported as being used but with a very little % utilization.
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Offline Dan

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Re: Should I use all of my credit cards at least once a month?
« Reply #10 on: November 15, 2011, 06:00:46 PM »
If we're talking about the same thing, i'm pretty sure Dan said to use all cards and pay them off besides for a very little amount on each card (~$1?) so then they'll be reported as being used but with a very little % utilization.
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Offline Nitantnel

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Re: Should I use all of my credit cards at least once a month?
« Reply #11 on: November 15, 2011, 08:03:24 PM »
its a great idea to at least use each card once

Are we sure it's a great idea to do this every month or just the month before applying for a new CC?

And welcome back Comppdd!!

Offline compddd

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Re: Should I use all of my credit cards at least once a month?
« Reply #12 on: November 15, 2011, 09:20:00 PM »
If we're talking about the same thing, i'm pretty sure Dan said to use all cards and pay them off besides for a very little amount on each card (~$1?) so then they'll be reported as being used but with a very little % utilization.

Nice thank you! I guess I read it wrong. I'll leave $1 on each card :)

and Nitantnel I never left as far as I know haha

Offline YG

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Re: Should I use all of my credit cards at least once a month?
« Reply #13 on: November 15, 2011, 10:28:55 PM »
Acc to Credit Karma, 0% util. gets a grade of C as opposed to 1% - 20% which gets a grade of A.
[21% - 40% = B, and 41% - 60% = C (similar too 0%)]

Offline clownaparte

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Should I use all of my credit cards at least once a month?
« Reply #14 on: November 15, 2011, 11:50:29 PM »
He may have. I'm not sure in what context he mentioned it, but if all you are doing is spending $1.00 and then paying it off, it'll have zero effect on your credit. (It may prevent the card from being involuntarily closed for inactivity, though. But that has nothing to do with your credit score--directly anyway.)

It's been reported that having a util % above 0%, but below ~30% is better than 0%.
+1. I always make sure to use cards with large CLs at least twice a year. I don't want 25k or 30k CLs dropping off my report if they close it. I've had chase close an inactive account on me with a 15k CL, and since then I make sure to protect my credit lines...