> > My understanding is that having a card and never using it IS actually good for your credit rating. I've been told it's a good idea, when you're a teenager, to have a credit card that you're not allowed to use, as then you get credit when you may need it later. But I don't have any evidence to support this theory, and I don't even really know where this impression originated. And, for all I know, if it were once true, it may not be anymore.


Having one or two cards and not using them is fine. But potential creditors will also look at how often and with whom you've applied for credit, too. Each time you apply, and inquiry is added to your credit record, so potential creditors can see exactly how many things you've asked for, and they pay attention to that and compare it to how many things you've actually gotten. For some reason, those inquiries count against you, too.

Also, having one or two cards and not using them shows up as exactly that. Both your high balance (zero in this case) and your current balance are shown on your credit report. Potential creditors can see that they really have no basis upon which to judge how well you pay, just as if you had never had a card in the first place.

Another myth is that having bad credit means you can't get more. You can almost always get credit for things like cars or appliances... Creditors WANT to give you credit for those things if you already have bad credit because they'll always have something they can repossess, and they can charge you higher interest. I'm sure you've read those reports that say making the minimum payment on most store cards will take an outrageous 15 years or something to pay off an $800 balance. That's true when you're being charged the maximum allowable interest.

As next-to-oldest living Rinkie, I feel justified in offering the advice that your credit is nothing to play games with.

/end of lecture.

Love,
Mousie