Periodic Use of Credit Cards

I am looking to purchase a home within the next 30-60 days and pulled my credit report + score from all three (Experian, Equifax, and Transunion). In less than two months, my scores from Experian and Transunion have gone down by approx 16 points each.

The report from myfico.com stated on one that a negative mark was that I had not had recent activity on my revolving accounts. However, the same was listed as a positive remark from the other bureau!

Should I purchase a few small ticket items on one of my accounts and pay it off, or will that hurt me more than it will help me?

I feel like I’m darned if I do, darned if I don’t!

Craig

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Hello Craig,

Speaking of negative factors, I looked at a report yesterday for a 796 score.  The report had the following negative factor: “The amount owed on your revolving accounts is too high”.

Funny part is that the credit limit was $96,700 and the amount owed was a mere $688. 

Anyway, Craig, to answer your question – yes, you should buy some gasoline or the like on a credit card periodically to keep the account active and open.  Since it’s out of the ordinary routine, be sure you are expecting the bill and pay it in full promptly.

Thanks for the questions and hope this helps.

Paul