If I get a credit card and then never use it, is that good or bad for my credit rating?
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ANSWERS: 3
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At the risk of being wishy-washy.... it's good and bad. It's good in a way, because it shows that you do have established credit from somebody. (sort of the "Well, if Mobil thought enough of this guy to give them a credit card, why shouldn't we lend money/extend credit?" argument) It's also a bad thing, because the credit limit on the card may be factored in (even if you haven't used the account and have a zero balance) when a new lender tries to establish your credit risk. They may see that you have an open account and could theoretically charge things to that account that would then decrease your ability to pay back any other new debts. If you're applying for a home loan and you're trying to maximize what you can qualify for, you may want to close any open, unused accounts before applying for a home loan so they don't show.
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First, credit cards are detrimental to your wallet. Keep only one, use it and pay the balance, on time. With that said, unrequested credit cards are plastic devils. The temptations to spend, spend, spend are worse than a morphine habit. Here is how I handle unrequested credit cards. Maybe, it will work for you. A new card arrives. I make only one purchase with this card. I pay the balance within 30 days. Its scissors time and I use this card no more. This will keep you in good graces and it will reflect on your credit as a good report.
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Use it for 6 months, build up some history then bury it. For more elements that affect credit scores visit http://debthub.blogspot.com/
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