Dream Sequence:
Your credit score isn't a measure of how well you pay off your debt. It's a measure of how well you pay off -interest- on your debt.
This is fact.
You want good credit? Someone has to get paid money from you above and beyond what the goods or services cost.
Fastest way to generate a positive credit score? Take out a loan, pay the minimums. Or rack up a small card balance, pay the minimums.
Are you about to pay off a loan? Take out a new one.
ShadoPrism:
Can't change cards really - got it through my bank - interest rates on it, if I am late, is only 10%.
10% is a really good rate. I'd keep that card. Just try to leave a small balance on there so it generates a small amount of interest.
quote:
(one group upped my interest rate to 40% with out telling me...
I'm not calling you a liar, but they probably did tell you. On page 28 of the user agreement, in the smallest of fine print, in legalese. Probably also in Comic Sans italic or Monotype Corsiva.
quote:
I get that they don't make much money off me...
Oh but they do. Or more aptly, off the vendors that let you use the card and then pay the CC company fees for that usage.
quote:
... but punishing someone cause they use over 30% of the card value just seems stupid to me.
It's because the higher the immediate balance the greater chance that a setback could spiral you into financial straits wherein you have to default on that debt. So "maxing out" your cards (or exceeding whatever % they consider to be 'safe') is seen as risky behavior.
Think of it like this. A credit card is an investment into you by the company, basically they're saying "We're extending you credit in the hopes we make money off of you". The more money they make off of you (over the long term) the more they reward you with a "credit score". The less money, or the riskier you start to look, well they'll report this so others won't make the same investment mistakes. And off course if your credit score drops too low, many companies have a proviso in the contract that they can just dump you, and they will if they aren't making enough money off of ya or your behavior signals to them that you've become a credit risk.