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Gone
Premium
join:2011-01-24
Fort Erie, ON
kudos:4
reply to dragonfly5

Re: [Serious] new ikea credit card

said by dragonfly5:

It'll build credit history just staying open.

No it won't. The only way you build credit history is to use credit. Merely having an account that you don't use isn't good enough.

dragonfly5

join:2012-09-04
That's a myth, Gone. FICO scores are based on account history, number of months reporting. Having accounts open with zero balance will build a history just fine.


Gone
Premium
join:2011-01-24
Fort Erie, ON
kudos:4
said by dragonfly5:

That's a myth, Gone. FICO scores are based on account history, number of months reporting. Having accounts open with zero balance will build a history just fine.

Not according to my business account manager at the bank I deal with. But hey, what do they know!


J E F F
Whatta Ya Think About Dat?
Premium
join:2004-04-01
Kitchener, ON
kudos:1
Reviews:
·Rogers Portable ..
reply to Gone
said by Gone:

said by dragonfly5:

It'll build credit history just staying open.

No it won't. The only way you build credit history is to use credit. Merely having an account that you don't use isn't good enough.

Not entirely true. Credit rating includes length of time any line of credit is open. This account for 15% of ones credit rating. Amounts owed is 30% of your credit. A higher balance means lower credit. Now not using the credit could ding him a bit, because not using it doesn't show payment history.
--
If you can't explain it simply, you don't understand it well enough. - Albert Einstein


BigSensFan
Premium
join:2003-07-16
Whitby, ON
kudos:1
reply to dragonfly5
said by dragonfly5:

That's a myth, Gone. FICO scores are based on account history, number of months reporting. Having accounts open with zero balance will build a history just fine.

Yes and no, having an account can also hurt you, because if they see the available credit on the account as being available to you, so it can possibly lower any future amount you want to borrow. (New creditors assumes you will use all your available credit)

Also, having a 0 balance does little good to your credit rating. The scores go up based on use and payment history. Generally if you want to see your scores go up, use the cards but never carry more than about 35% of the available credit as balance.
--
"The hardest thing about any political campaign is how to win without proving that you are unworthy of winning." ~ Adlai E. Stevenson