Credit Score go up or down ?

Question

For the past 2 years I have had 1 credit card. It is a no-annual-fee card. The credit limit is $ 6,000. Almost every month I charge 4 or 5 small purchases on this card. The card never has any more than $ 500 in charges on it. I always pay off the balance at the end of each month. I have never paid any interest or fees because I always pay it off as soon as I receive the statement.
Will this practice cause my credit score to increase, decrease, or will it have no effect on my credit score ??? Yes, I realize there are many other factors that can cause my credit score to go up or down.

Answer 1

This essentially will cause your score to increase at first. While some will tell you as long as your monthly balance is less than 50%, others will say as long as it is less than 35% of the limit.

I have been doing some research lately and found this is true as what you are doing. Creditors like to see you are being responsible with your money. If your balance gets too high, it will cause your score to drop. The reason is, it seems as if you have extended your credit too far to where you may be in financial trouble.

Having an established card with a balance at 10% or less like you have and keeping it active is good, but there is a point to where it will not cause your score to increase anymore. If you need it to increase some more, I would suggest to possibly get a cash advance and take out about 30% of what the limit is and hold onto the cash and when the bill comes in, pay it off with the money you withdrew previously. Now you are showing higher balances, but have not went about 35% of your balance and are still paying your card on time and having a more established history with higher "purchases". Do this a few times and you should see a significant raise in your score.

Hope this helps.

Answer 2

AS long as you are not using a large portion of your credit availability and you are paying on time, you are not incurring more than one or two inquiries ever 6-12 months, your score will continue to go up. There is no "ceiling" on how much it will go up until of course you reach to top of the score model. There are no bankers pouring over your credit activities each month to see what you are and aren't doing, your info goes through a score model each month and reassesses you automatically, if favorable conditions, such as the situation you are in are recorded, your score will go up. There is a catch 22 in the system which does not like too many new accounts, but also does not like no new accounts for a long time. If it has been like 5 years and you have not opened any new credit, you may get a small reduction in your score.....most people will not have that problem, there is always a car loan, mortgage refi, credit card app on the horizon, just not too many. They are always trying to reassess the scoring model, as it can become outdated with the changes in the average person's lifestyle. For now, you sound like your good....keep on doing what you are doing, and your score will continue to rise.....need a new car next year? don't sweat it, that's what the models expect you to do.

Answer 3

there is not any set style of factors your score will bypass down for an inquiry, it will boost based on the form of inquires you have over the final 6 month era. the completed theory is to ascertain danger, in case you're utilising for rather some credit your this would point out you're a extra physically powerful danger as you're finding to handle extra debt and a few lenders won't be granting it to you. That mentioned in case you save on with for a mastercard and have not utilized for something these days you will desire to lose under 5 factors in case you have many inquires over a short era it would desire to be as much as twenty factors. yet those bypass away after 6 months, and in case you do have some inquires on your credit from procuring a sparkling vehicle or abode and procuring expenditures or something like that, write a letter to the lender the place you're utilising and clarify which you have been procuring for a vehicle loan or a loan and that they'll brush aside the inquires. wish this helps.

Answer 4

So far so good! Having a good credit history is one of the best things you can do. So kudos to you.

When you're trying to build a solid credit score it's important to get a comprehensive view of what is actually effecting it...
Your Credit Score (also known as your MyFico score) is calculated with the following breakdown:
35% - Payment History
30% - Credit to Debt Ratio
15% - Credit History
10% - New Credit
10% - Credit Types in Use

Read more here from my blog :
10-Ways to Boost Your MyFico Score
http://millionster.com/articles/debt/increase-fico-credit-score/

Your credit score is important so if you want to know what it is or even track it over the course of time check out some of my links below to help!

Answer 5

As long you keep the account in good standing your scores should continue to rise as the account ages.
With only having one card, you probably won't see your credit scores rise by leaps and bounds, it would probably be just a fairly steady increase.

I would not do as the first poster recommended and take cash advances for several reasons --
The cash advance fees are generally high.
If you fail to pay in full, you will be paying a much higher interest rate on the balance.
Even though creditors allow cash advances, they look at the people who take advances as higher risks.

Answer 6

this is good for your credit score...however, if you are interested in your score going up, then you need to open a few more cards but do not use them. by opening up cards, you will increase your available credit. the ration of debt to available credit is worth about 25% on your credit score

Answer 7

What you are doing will definitely cause your score to go up.

Here's a link to the myfico website...
http://www.myfico.com/CreditEducation/ImproveYourScore.aspx