Reply #48: Having credit, and not using it, lowers your credit score

[TechBear_Seattle]

Part of the formula which generates your credit score involves total amount of available credit and how often you use it. I believe the "sweet spot" is to carry a balance of about 25% to 30% of your total available credit. If you carry a higher balance, you are seen as taking on too much debt, and your score is lowered. If you carry a lower balance, you are seen as not a sufficiently profitable consumer, and your score is lowered.

Like I said, it is a catch 22: you are damned if you do and damned if you don't.