It’s always good to share the information you have with anyone who needs it because you may never know the impact you have on their lives. Here are some questions and answers to some very common credit inquiries.
A Client wrote:
Hey Brent! Hope all is going well. I have a credit question and-thought you’d be able to help on my quest to better my credit scores. On the credit report/scores that I obtained on-line – the
suggestions to improving your credit scores section – it suggests that I open
another account(credit card).
Is it bad to pay off a small credit card of $300 with another credit card?
Will opening another credit card increase my credit scores only if there
are major purchases and then I pay them off immediately?
Is it bad to keep the $300 credit card open with no activity?
Appreciate any assistance or if you of know of a website that will talk more about credit do and don’t. Happy Holidays to you!! See you in the Spring.
I can help you with your questions.
#1. It’s never bad to pay off a credit card unless the account is a
collection account or charge off or anything of that type. If you want
to pay a card off of that type be sure to know that it will have a
negative effect of the credit.
#2. If you open a new card and it reports to the credit bureau then you
are in better credit shape. You don’t have to make any purchases to
have an immediate bump in credit score BUT if you go out and use it all
it will bring down your scores lower than before. Rule of thumb- keep
credit usage to 30% of balances or if you have a $1000 credit limit keep
the balance under $300 unless you plan to pay it off immediately.
#3. No activity has a little to do with decreased scores but know this,
limiting usage is a good thing because you are controlling your spending.
Use it from time to time but do what is comfortable. If you let it sit
there for a very long time then the company could discontinue you line
I have a detailed book that I will send you going over all aspects of
credit and how to best use it and I will send you a CD with this
information as well.
I hope things are going well and I let me know if you have more
Be in Touch!
It’s important to have all your questions answered so you know what to expect as you make changes to your credit because any change can show up in your score either good or bad. I just want to be sure it’s good!
To get your copy of my Credit Workbook please email me with your address and I would be happy to send it to you, unfortunately it only comes in hard copy. Also if you have anything to add, ask or delete please feel free to leave a comment.