Hi, its peachy again, and am gonna do it but.?
Answer:
Well now I work for a credit card company and I can tell you that your score ties directly to your usage of credit. The more you use your credit and pay in full each month the higher your score will be, similarily if you use your credit and only make minimum payments your score will be lower. Non payments or late payments will drive this even further. Trust me if you want a high credit score get a low interest rate card use it at least once a month and pay the balance in full every month. This will take about a year before you will see a noticeable difference in your score. You should get good low interest rate card or an airline mileage card or some type of rewards program card because you can earn rewards while you build your credit. Easiest thing to do is take and use your card for something that you would buy every month like gas, groceries, or pay your normal bills (i.e phone, cable, internet, gas, electic, etc) As long as you set aside the money to pay for these things every month you will be on your way.
I currently use my airline miles card for; groceries, cable, phone, electric, and earn 2pts per $1 spent.which comes out to about 920 pts or award miles a month. over a year this adds up to about 11,000 miles most air miles programs you need 15,000 to take the reward for a free ticket or do what I do and use the rewards accumulated to discount my airfare. I go to Florida every winter for next to nothing this way.
No, you dont need to use them to get a better score. I have had a visa open that i paid off 3 years ago and it still helps. The credit card company doens't send anything to say "SHE PAID THIS MONTH" they only send something to say "pays as agreed." if you have 0 balance hten your payment is not due, and you're okay.
The credit score is based on open account and is judged by the balance verses the credit limit. If you have cards that are open and payed off it makes your credit rating higher because it shows you pay your depts. Canceled cards show up on your report and could help if you have a lot of cards but can hurt you if you have only a few. I would keep the account open and just not use them.
I agree with sisinlove.
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