Confused about the idea of paying off all cc debt

[conway30]

So if i charge about 20 to 30% of my cc debt every month and pay it off every time right away, and lets say this happens on the 1st of every month but they dont report until the 15th, then how will anyone know im even using the card? As far as the bureau knows im never using my card and my score wont go up, right? Might be a stupid question with a simple answer but i cant see why ever paying off the card in full every month will help under this situation. Thank you all.

[willingtocope]

The only "score" that credit card 'utilization" helps is the FICO Bak Card score. I call it the "sucker score" because its the score that CCs use to determine who they willl make money off of. Most people think that the higher the sucker score, the more credit cards you can get...not true, a score in the mid 600's, with a few lates and overlimits will get you lots of offers.

Read my signature.

[conway30]

only use the card every few months and pay off all the balance and avoid the hassel of the immediate payoff? Its a secured card (no benefits) and my credit is a humbling 610 and i have only had the cards for about 3 or 4 months.. And i appreciate your answer and i hope im not misunderstanding but it sounds like my only fear would be that public bank, new mill and wells fargo closing my accounts for non activity?

Edited July 26, 2010 by conway30

[Great Lakes]

I have read some information about how to get your credit score higher using credit cards. If your desire is to increase your credit score with credit cards alone, you can only go so far (Mind you there are other ways). Keeping your credit balances at 30% of your total credit available and making on time payments is the key. Paying off your balances is almost as destructive as maxing out your credit cards. Creditors want to see history which means that you have to make payments on time and run a 30% balance of total available credit. This is how you make good credit history and/or improve your score. Keeping your balances at 30% of total available credit on 3 or 4 credit cards only, show that you can maintain a balance, but are not in a rut, aka 'revolving credit burden", which is a no no. Having more than 4 credit cards is usually a credit score killer.