Does having a CC account in whichI pay in full every month show as actively used?

[JackBondLove]

The 2 vendor specific CC accounts I got from my app-o-rama only allow for making specific payments online, without the ability to set up autopay. Because of this, I will not be letting any balance go on (since it will be a pain in the ... to pay every month.) The only reason I have these accounts is to build up brownie points to get my future HELOC - for which I've been told that I need a certain number of active credit accounts. I am wondering if I will show any decent credit use history by simply paying off the balance every month. Also, because I am abroad most of the year, I will only be using these accounts once a year.

[Amy26]

Well, maybe and maybe not. *SOME* card issuers will not update your credit report every month if there isn't any activity... while a lot of them do. It will still show as an open in good status trade line and if you never use it will help your utilization. So, yes the answer to your question is yes it will benefit you.

You just need to be careful because pretty much all credit card companies will just close your account if you never use it in periods of like 3-6 months. So, if you want the accounts to stay open longer than that, you will need to use them at some point at least once every 3 months or so.

Also, you should be allowed to set up auto pay from your bank regardless if the vendor allows it on their website. Do you have online banking with your main bank?

[Logan]

Well, maybe and maybe not. *SOME* card issuers will not update your credit report every month if there isn't any activity... while a lot of them do. It will still show as an open in good status trade line and if you never use it will help your utilization. So, yes the answer to your question is yes it will benefit you.

You just need to be careful because pretty much all credit card companies will just close your account if you never use it in periods of like 3-6 months. So, if you want the accounts to stay open longer than that, you will need to use them at some point at least once every 3 months or so.

Also, you should be allowed to set up auto pay from your bank regardless if the vendor allows it on their website. Do you have online banking with your main bank?

Amy, I've not used my Barclaycard and Chase card for more than 6 months and they're still open. I may find out just how long it takes for these accounts to be closed due to inactivity.

Logan

Logan

[Amy26]

Ah, well good to know... I had one of my cards closed last year from just 3 months of inactivity... just depends on the lender.

[TBA]

I think the original question asked in the subject line was if paying off the card each month will still help your credit score? the answer is yes. You do not have to carry a balance - only show activity and payment history - to positively impact your score. The credit card companies want you to think that you have to carry a balance because this is where they make their money (interest anyone? - never mind the merchant services fess) - but you dont. Activity and payment history