Cash is King – Upside Down Mortgage Solutions

November 6, 2006

Simple Credit Questions and Answers to Improve your Score

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).
        Question 1:
        Is it bad to pay off a small credit card of $300 with another credit card?
        Question 2:
        Will opening another credit card increase my credit scores only if there
        are major purchases and then I pay them off immediately?
        Question 3

        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.

My Answer:

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
of credit.

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!

Brent Lane

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.



  1. Credit bureaus frown upon transferring your debt around. Canceling the $300 card could actually lower your credit score because this would raise your ratio of debt to total amount of available credit. See my blog for additional info.

    Comment by PapaJoe — January 6, 2007 @ 2:29 am | Reply

  2. To get a house, get a car, have a credit card, and basically legally exist in the United States, you need to have credit. And if you want to have the best opportunities for success, you’re going to need GOOD credit. Yes, you did see those words ‘Good Credit’; it’s not an oxymoron – it’s quite possible. Just want to share this article, How to fix poor credit

    Also, there are online companies that provides cards for bad credit and loans that helps improve credit score.

    Comment by aleish — January 19, 2007 @ 9:49 pm | Reply

  3. It’s a pleasure to come upon a blog like this, which provides such a scope of useful information on Credit. I know, for a fact, that getting any kind of reliable tips on this important topic can be nearly impossible.

    My own website **KEYWORD** is similar to yours in that it gives my visitors tons of useful expert advice and content on credit repair.

    Comment by Jorge M. Vega — February 11, 2007 @ 7:47 pm | Reply

  4. i am a stay at home mom,and i was shocked and thrilled when i fibally was able to get my own credit card, with out my husband. becasue i have never been able to becasause i didn’t have any income. before i got the card my credit score was 724, and i assumed that beiung good with this card would increase my score even more. well the moth after i got the card, my score dropped by 70 points, and all i did was put 100.00 dollars on the card wich was only like 15% of the card limit. what happened? should i just pay off the card and get rid of it, should i keep it. we were going to get a new card with my credit, but now it sucks! any adivice

    Comment by jessica — April 4, 2007 @ 12:03 am | Reply

  5. Credit used wisely is the grease that keeps this country running. Unfortunately too many are over extended and are being squeezed in the current credit crunch.

    Comment by Adele Richards — September 21, 2007 @ 2:29 pm | Reply

  6. very interesting, but I don’t agree with you

    Comment by Idetrorce — December 15, 2007 @ 1:25 pm | Reply

  7. Here’s some more info about improving your credit scores –

    Fix Credit

    Comment by GoodCreditRocks — September 8, 2008 @ 6:49 pm | Reply

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