How do I keep a 783 credit score nothing owed on my credit?
by Author on Monday, May 31st, 2010 | 4 Comments
I have paid all my debts off. I have a 783 credit score. Do I need to keep a couple of my credit cards open using them maybe once a month to keep them active to keep my credit score the way it is. I don't want it to go down by not keeping my credit active. Any suggestions?
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You can use this credit monitoring service to pre-estimate future scores for different scenarios of such payments – buildcredit.ifastnet.com
I saw this on privacyrights. com – thought you may find it helpful. I know it is not the question you asked, but it offers info to managing credit….
Does it improve my score to pay off my credit card balance every month?
Not necessarily. Points are given or taken away based on the amount of available credit used. Certainly, using the maximum amount on your credit card and paying only the minimum each month can lower your score. But, using a large percentage of your available credit each month, even when you pay the bills faithfully, can detract points if you are carrying a high balance at the time your credit history is scored.
Remember, the credit score is a snapshot of your credit report on any given day. Most credit card companies and other lenders report to the credit bureaus every 30 days. If your credit report is scored right before your monthly credit card bill is due and you’ve used a significant portion of your available credit, your score will go down.
Having to many trades or to little trades can affect your score. While paying off your cards in full every month does make you a responsible person it still affects your scoring. Each score is different based on the provider.
Here is what you should do:
1) Keep all your current credit cards.
2) Don’t cancel or apply for new ones (doing so too often lowers your score)
3) Spend $20 on each card every month (gas?)
4) Pay them off in full every month
The secret to having a high credit score is to having a lot of credit available to you, but using very little of it. This shows banks that you are not dependent on credit and therefore you are financially stable. Maxing out your cards is the worst thing you can do.