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You are another person that doesn't know how credit works...
1) Credit card companies figure out your rate and how much credit they should extend to your based on these factors:
- Length of time you have had credit extended to you
- Length of time between now and the last bad mark you had
- How bad the mark was (30 days, 60 days, 90 days, default)
- How many bad marks you have
- HOW MUCH CREDIT YOU HAVE EXTENDED TO YOU (add up all of your credit limits + car loan amounts + home loan amounts)
- HOW MUCH CREDIT YOU STILL HAVE AVAILABLE TO USE!!! (add up credit card totals + car loan + house payment and then subtract that from total extended to you with a special exception for home loans detailed in the next part)
- If you own a home or have other collateral items such as a business, extend to you more credit
OK... So it is because YOU DON'T use your cards that they feel comfortable extending you more credit. Not because you use them. To the contrary, the credit card companies have NO WAY of knowing if you "use" someone else's card. They don't have magic crystal balls... Well... some do... but the point is they have no idea if you used the card and paid it off in full each month or don't use it and it just sits there...
They also have no idea of how much money you make.
So again... if you have $8,000 extended to you and "use" $1,000 thinking you are "showing them something" you are an idiot... To them this means you have $7K left and have a lower income available to pay off more credit. So lets only extend another $1.5K on the next card.
But if you have $8K and all $8K is sitting dormant you have more money to spend each month because you don't have a minimum payment. So extend $3K to you on the next card...
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