Quote:
Originally Posted by DETRoadster
Quote:
Originally Posted by bimmer456
Pretty lame that I would be punished if I didn't charge anything to the card. Seems counterintuitive ya think?
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No, not really. your credit score is a measure of your credit worthiness, or in other words, the risk a lender takes on in extending you credit. If you have an open card with no balance and an available limit of $X, there's a risk you suddenly max it out and get yourself into repayment trouble. Lenders can feel more at ease that you wont do that if you have a long history of charging less then the max and then paying it off responsibly. You did not have that track record with your unused card. Thus, the risk is higher. |
I pay off all my other cards so my risk is low to lenders. Also, my newest account is over a year old. Low credit utilization ratio to total credit limit raises your score.