BudCle Posted October 10, 2004 Report Share Posted October 10, 2004 I have 3 CC one is from BOA with $3500 limit($0balance); one from my credit union with $1000 limit($0balance); and a secured card from NC with $250 limit($0balance). The question I have is I use my cards but I pay them off every month. Is this good or should I carry a lilttle balance on one of them? Any insight will be appreciated. Also should I close the secured card or leave it open? Will it hurt to close? Thanks Link to comment Share on other sites More sharing options...
DHK Posted October 10, 2004 Report Share Posted October 10, 2004 I have 3 CC one is from BOA with $3500 limit($0balance); one from my credit union with $1000 limit($0balance); and a secured card from NC with $250 limit($0balance). The question I have is I use my cards but I pay them off every month. Is this good or should I carry a little balance on one of them? Any insight will be appreciated. Also should I close the secured card or leave it open? Will it hurt to close? ThanksHow long have you had the secured card? You might want to ADD to the collateral account and increase the line. National City is a good bank to deal with. I'd keep the card, add to the security deposit, and ask when the card can become unsecured. You've already began the relationship, you might as well take advantage of it.IF you choose to carry a balance, I would carry it on the BofA card. The balance will show as a lower % based on that card's limit (compared to your $1k and $250 limits).$100 balance on BofA at $3,500 = ~ 3% utilizationThat same $100 balance on your $1k card = 10% utilization$100 on your $250 CL = 40%I'm not much of an advocate of paying interest to watch FICO increase. I'd rather be more responsible with my cash flow, than freely give it to a credit card company. (Of course, I learn this while I'm in debt $50k on CC's.)I've heard that FICO likes it that you carry a balance of 20 to 30% or less. I wouldn't do it JUST to please the "FICO Gods". Link to comment Share on other sites More sharing options...
BudCle Posted October 10, 2004 Author Report Share Posted October 10, 2004 I have had the secured card for about 7 months. The $1000 I have since July and the BOA I have had for about 2 months. The only thing is that the secured card has a fee of $3 a month. I dont like giving that money away. Anyways my scores are in the 680's. What happens if you put money in a secured card and then want to lower the limit how does this look??? Thanks Link to comment Share on other sites More sharing options...
cabledude Posted October 10, 2004 Report Share Posted October 10, 2004 I don't really see how fico really cares about a "revolved" balance? My cards that are paid in full look just like the ones that aren't. They show the ending balance no matter what and there is no indication of what amount was revolved. I've maxed out a card one month and it killed my fico and the next I paid in full and the balance went down and the fico bounced right back.However, the CC company might like you better if you pay them some interest? However, once your scores break about 675 they all want you and you can find friendly creditors on every corner no matter if you pay interest or not. Link to comment Share on other sites More sharing options...
DHK Posted October 10, 2004 Report Share Posted October 10, 2004 National City has a $3 monthly fee for a secured card? THAT SUCKS!!! Then again, as long as it doesn't have an additional ANNUAL FEE, I guess it's alright @ $36 per year.As for lowering a limit on a secured card, I'm not sure if you can do it. I'd call the issuer directly and ask. As far as your reports go, remember that your reports report the highest balance for each card. If your highest balance exceeds your new lower CL, it could present a problem. Link to comment Share on other sites More sharing options...
DHK Posted October 10, 2004 Report Share Posted October 10, 2004 I don't really see how fico really cares about a "revolved" balance? My cards that are paid in full look just like the ones that aren't. They show the ending balance no matter what and there is no indication of what amount was revolved. The reports DO show what your last payment was. So lenders CAN see if you PIF, or not. I'm sure that FICO can determine this as well. Link to comment Share on other sites More sharing options...
cabledude Posted October 11, 2004 Report Share Posted October 11, 2004 This is true, but good payment history in general has been good to me over the last 24 months. I say screw them and their interest charges if you don't have to. Like you I was over $50K on the plastic once before and I figure they have enough of my money. So I just don't advocate paying interest if you do not have to and the potential gain you may get from it is small in my opinion. Link to comment Share on other sites More sharing options...
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