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I have a Capital One credit card I haven't used in about a year. I keep it for emergency purchases. The balance is $0. Does this effect my credit score since I'm not using the credit that I applied for?

2006-12-09 09:37:30 · 5 answers · asked by Anonymous in Business & Finance Credit

5 answers

Have you used it at all? If not than the credit bureaus don't even know about it. It does not show up until you use it.

2006-12-12 17:14:06 · answer #1 · answered by luciousgreeneyedlady 5 · 0 0

yes credit works both ways. to have a credit card and not use it the company will cancel it. you need to have activity to build your fico score. the way it works best is you should have one purchase a month, gas something at least $25. and then do NOT pay off the entire balance. leave 15% of the balance behind. the reason for this is the credit company looks to be of service. when you use the card they have a commitment from you and you are doing good faith banking. if you pay off the entire balance it you give them no indication that you will be keeping the relationship. if you leave 15% on the card then the credit agency is assured you will be dealing with them for another month. in turn they begin to report good activity to the bureaus. they use that to build your fico scores to help you get better interest rates on mortgage, auto loans and other credit cards. true goal is to have one gas card, one store card, and on major credit card, along with a current mortgage and auto loan and your scores will be in the 700s. hope this helps. if you have any further questions feel free to email for assistance. highergroundfinsvc@yahoo.com

2006-12-09 10:38:46 · answer #2 · answered by MARY A 2 · 0 0

First... in no way in no way in no way max out any credit card! At one time banks used to up the cut back... now they do no longer... and maxed out playing cards negatively impact your score. value a tank of gas a month on each and each and pay it precise away to terrific help your score. If any of the playing cards are decrease than 6 months previous you will possibly desire to have the skill to cancel without severe undesirable effects. If any are charging you costs, bypass forward and cancel them. Your score might take a quick hit, yet you're handling your credit in basic terms high quality so the hit would be short.

2016-10-14 08:48:49 · answer #3 · answered by scafuri 4 · 0 0

It won't hurt or help your credit. Credit bureaus want to see that you are responsible about USING your credit. Not just having it available and never using it. Basically, if you want to build up your credit score use your credit line, but try not to exceed 35-50% of your available credit, and pay it down to zero every month. I actually pay mine down every paycheck which minimizes interest costs and looks really good on the credit report. But if you're only worried about your credit score getting lower, don't. You're just not working toward building your credit score and your credit history unless you're using what you've got.

2006-12-09 09:43:03 · answer #4 · answered by candy 2 · 0 0

it doesn't affect your credit. if you want to improve the credit, use the card and keep a balance of 30 percent or less. if you use too much of the available balance, it will hurt your credit because it will look like you can't handle your finances. so, if this is your only card and you have no credit, USE IT...carefully.

2006-12-09 09:47:43 · answer #5 · answered by morequestions 5 · 0 0

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