Dear Liz: My wife and I recently paid off our mortgage and now only have our two Visa cards, which we pay off in full each month. Depending on our monthly expenses or purchases, these balances rarely exceed a few hundred to possibly thousands of dollars. Each card has a limit of several thousand dollars

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and would be much higher if we hadn’t asked for lower limits on the accounts earlier.

My credit scores dropped from well above 800 to a low 700. A credit reporting website suggested that I open more credit accounts because lenders reportedly like to see different accounts when assessing credit.

I do not feel like it. I had excellent credit for decades.

I worry that if we make some car purchases in the not-too-distant future, our current results may not qualify us for preferential financing (0%). While we can pay for these purchases in cash, I prefer to use such a financing option and keep my money in accounts that continue to increase in value.

Are we stuck in this situation unless we are willing to take on more debt?

Why you should watch your credit usage

Answer: No, but you need to be a little smarter about how you handle your credit.

You have not helped yourself by asking for lower credit limits. The formulas like to see a big gap between the amount you have and the amount you use, even if you pay in full each month. Ideally, you would keep your usage percentage in the single digits.

Taking out your only installment loan probably also affected your score. As you have already learned, credit score formulas favor those who responsibly manage a mix of credit and cards. You can get good results using only credit cards, but without installment credit you may not get the highest possible results.

Does that mean you won’t get 0% financing when you’re ready to buy a car? Maybe, but 0% financing is pretty hard to come by these days anyway and might not be what you think. You usually have to do without factory discounts to get special financing offers, and dealers are often more amenable to price negotiations. In other words, what you save in interest can be more than offset by a higher price for the car. You are better off using a cheap car loan from a credit union or paying cash.

If you want to finance the cars, ask about your credit first

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card companies to reinstate these higher limits. Consider opening another line of credit

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Card account or two if first vehicle purchase is six months or more in the future as it takes a few months for your balance to recover from the temporary difficulty of applying.

Another option is a small personal loan that adds an installment loan to your loan mix. Only you can decide if it’s worth paying interest now to pay less interest on a future car loan.

Social Security survivor benefits can be confusing. How They Work Switch between survivor benefits

Dear Liz: My wife receives a survivor’s benefit from Social Security. Next year I will start collecting my own Social Security benefits at full retirement age. If I were to die, could she switch to a survivor’s benefit based on my work history? I know she would get a lot more than she is now, that’s why I’m asking.

Answer: Yes, your wife can change if you die first. If you can afford to wait a little longer with your application, increase both your own pension checks and the survivor’s pension she is entitled to. AARP has a free calculator you can use to see how much bigger your benefit could be.

For those wondering, survivor benefits for widows and widowers can continue if they remarry at age 60 or later. This does not apply to divorced spouse benefits that end when the recipient remarries.

Certified Financial Planner Liz Weston is a personal finance columnist

geek wallet.

Questions can be directed to her at 3940 Laurel Canyon, No. 238, Studio City, CA 91604, or by using the “Contact Us” form at

askliweston. com.