Cancel or keep card?

[IBroke]

So, if you are using the card to build credit, it's best to wait until after the closing date to pay it off. That way your report will show that you use credit responsibly.

The problem is the definition of of the term "using credit responsibly": On the one hand, your described method would show that the account was active. That's a plus. On the other hand, paying after the closing-date usually leads to a higher reported balance - and some lenders might have a different definition of "responsibly". So to me, "using credit responsibly" is an empty phrase. That is the reason why I don't care much about the reported balance if I'm not currently seeking credit. And here's why:

If you only want to (RE)BUILD credit, it actually doesn't matter when you make the payment - as long as you stay current. Paying off the entire balance every month saves you interest - but won't increase your FICO-score in the long run. If you know exactly when you are going to NEED credit, you can get the best score possible simply by planning a month ahead. FICO doesn't consider your "balance-history" - only your current balance. So it is totally sufficient to keep an account in good standing to rebuild credit - the balance doesn't matter until you apply for something.

Right now, I have 6 CCs with credit-lines between $300 and $1,000. My score right now isn't that good because I'm currently avoiding the hassle to organize the perfect reporting-balance on each account. I'm just keeping them current. I'm planning on refinancing my car the first week of March - and that's why I'm going to focus on the reporting- and closing-dates of my CCs at the beginning of February. That will result in the perfect utilization once I'm applying for my new car-loan and my FICO will be just as good as if I would have paid off my CCs every month or had the cards reported a $0 balance.

[JackBondLove]

With the housing market the way it is I am curious why people get HELOC's. Isn't that really just like a big credit card that you take all the cash out at once? I know that it isn't but it sure seems like it. You are basically taking the equity that you have built up in your home and spending it. What would be a good reason to do that and isn't that really living beyond your means as well?

Two reasons - I am now taking distributions from a Roth IRA, so anything I can bleed out of a HELOC would be preferable. Also, I would prefer to not have to sell my current home before buying my next home. Without a HELOC, the equity in my current home would be dead - with a HELOC, I could simply withdraw the equity to put down as the downpayment on the new home.