Credit Help?

Question

I accumulated quite a bit of revolving debt that I am paying off now. I have not used any of these account now in a while as I am paying them off. Once I get them to $0 balance I plan on kepeing them open a I will use them again but there may be quite a gap in usage. I know inactive accounts can end up hurting you as the issuer may stop reporting but how long does this typically take? and is it better to close these account or keep them open? Also a few of my cards have credit balance increases available. I dont plan on using the additional credit so will it be good to take advantage of these as it will make a bigger gap between my used and available credit?

Answer 1

Your strategy is a sound one. By paying your balance down you are increasing gap in your debt to credit ratio. This will help your credit score. Keep the accounts open and use them only once or twice a year after you have paid them off. This will keep them active and reporting. As long as they are reporting your credit will look good. Longevity of an account is one of the things that creditors look for when determining your credit worthiness.

Keep up the good work. You are doing fine.

If you have any further questions about your credit issues, you may contact me at [e-mail]

Answer 2

I agree with Robert.

If they are store cards, you should use them once every 4 to 6 months to keep them active. Stores cards are generally closed quicker than major cards.

It doesn't take much to keep them active - buy a pair of socks or something cheap and pay it off when you get the statement.

It's good that you are getting credit limit increases, even though you do not plan on using it. It helps your credit.

As far as one poster claiming that it will hurt your credit by having the cards open - that is not true. It hurts more to "not" have open credit.

Available credit does not equal debt.

Answer 3

I'd close them once you're done. It will temporarily lower your credit score but it's nothing major. If they're inactive they'll be closed anywhere from 6 months-1 yr or so anyway. Plus, the more open credit you have the worse it is because you're more of a credit risk if you want to apply for a loan (car, house, etc.), and having all this available credit will temp you more into spending. Just pay them off, close them, and in the future think twice about if you really need to buy things on credit.

Answer 4

Those that say that the English won't study an additional language don't seem to be joking. There was once a information object over the weekend that a special field of Spain that has been overrun by way of the British are actually status for the regional council when you consider that among different matters their kids don't seem to be taught in English. To the man or woman that says that the Spanish realize English however would possibly not talk it . I say how have you learnt? I spend plenty of time in France and plenty of persons don't talk English and if they may be able to why must they,no person will talk to them in French in this aspect of the channel. I went to are living in France within the overdue 60's early 70's while I was once on submarines with the SA military, at the moment my French was once well however now it's rather rusty. I nonetheless talk French while in France even if spoken to in English ( by way of the French). I have consistently had exceptional admiration for people who spoke different tongues peculiarly those who made the hassle to talk an African language (I talk now of the white populace) I consistently lived at the slopes of Table mountain and as a child went to a personal tuition within the Southern suburbs and rarely spoke Afrikaans. I have observed that my little institution of SA peers right here in UK pop out with Afrikaans, or talk in truly Kaapie accents at all times we're in combination.

Answer 5

I completly agree with Robert. You are doing the right thing, keep it up. You are in the minority.