@Anonymous wrote:Zero Balance Reporting
So I have been reading that Zero Balannce Reporting is good for fico score calculation. Till now I have been PIF once my statement is generated. The reasons being:
1. I didn't use my Chase for a few months once and they had put it on hold and I had to call them up to remove the hold. The letter I got was on the lines TU had been reporting 0 balance to them for 5-6 months. Is the time of no use 5 - 6 mos. because that could be the reason why. So if you didnt use your chase card for 5 - 6 mos. and it did have a 0 balance that would be the reason of it reporting 0, or you PIF before the statement cut.
2. My assumption is to get a high CLI, card companies need to see high usage to justify that. If I employ Zero balance wouldn't that get affected. All lenders want to see their cards being in high usage. As for a High CLI that will depend on your report and income, also lender want to make sure their card can fit your needs. So if you ask for a increase explain to them why you may need it. It might help your chances
3. Rather than a Zero balance wouldn't it make sense to report a low balance but also show once in a while a high usage (still keeping under 10% util.). What i do for something to report and have no interest is PIF when the statement cuts. Then between the statement cutting and a new statement which is generally 3 days, charge X amount. After those 3 days of statement cutting a new one will generate with that amount showing that amount on your reports and you avoid interest.
AAoA
When I started building my credit history I had to start with a Cap1 card which had a $45 AF and an Amex Gold which had its 1st yr. fee waived. After 1 year and in between the time frame I had acquired other CC with no annual fee. So, after 1 yr. I had closed both those 2 accounts. This was roughly 5 yrs back. Now I have other cards from both these lenders. Is there anything I can do with those 2 old closed accounts to recover some age. As I have seen and read 5-6 yrs is considered fairly new and anything I can do in that area should do me good. Since the accounts are closed theres not much you can do. They will continue to report for 10 years and then they fall off. As for 5 - 6 years being fairly new, i would consider that fairly old actually
In my opinion if a card is less than 1 year old its new, once it hits the 2 year mark its still new but not that new. As long as you have a AAOA above 2 years i think you will be fine.
Thanks.
@longtimelurker wrote:Surprised by the letter from Chase. In general, credit reporting is for the benefit of other issuers, Chase knows what you are spending on Chase cards. This is why you don't need to show a high balance for a CLI, the issuer knows your spending and payment. I think so too. I guess I will try and see how this works on for my next CLI request.
@ Skye12329 wrote:
@Anonymous wrote:Zero Balance Reporting
So I have been reading that Zero Balannce Reporting is good for fico score calculation. Till now I have been PIF once my statement is generated. The reasons being:
1. I didn't use my Chase for a few months once and they had put it on hold and I had to call them up to remove the hold. The letter I got was on the lines TU had been reporting 0 balance to them for 5-6 months. Is the time of no use 5 - 6 mos. because that could be the reason why. So if you didnt use your chase card for 5 - 6 mos. and it did have a 0 balance that would be the reason of it reporting 0, or you PIF before the statement cut. That might be true. I dont think I used that card at all during that 5-6 month period.
2. My assumption is to get a high CLI, card companies need to see high usage to justify that. If I employ Zero balance wouldn't that get affected. All lenders want to see their cards being in high usage. As for a High CLI that will depend on your report and income, also lender want to make sure their card can fit your needs. So if you ask for a increase explain to them why you may need it. It might help your chances
I have had the Cap1 Venture card with starting CL of $7,500 and after 6 mos when I requested a CLI I was declined saying low usage. I put in a single of usage in the range of $3,000-$,4000 in the next 6 mos, did another CLI request recently and was offered CL of $9,000. Generally, have used the web interface to request CLI, I guess I should perhaps try via CSR and might have better offerings.
3. Rather than a Zero balance wouldn't it make sense to report a low balance but also show once in a while a high usage (still keeping under 10% util.). What i do for something to report and have no interest is PIF when the statement cuts. Then between the statement cutting and a new statement which is generally 3 days, charge X amount. After those 3 days of statement cutting a new one will generate with that amount showing that amount on your reports and you avoid interest. Not sure if I follow completely but it sounds quite complicated. I guess I'll try paying so that my statement generated in much lower than before and see how it affects my score.
AAoA
When I started building my credit history I had to start with a Cap1 card which had a $45 AF and an Amex Gold which had its 1st yr. fee waived. After 1 year and in between the time frame I had acquired other CC with no annual fee. So, after 1 yr. I had closed both those 2 accounts. This was roughly 5 yrs back. Now I have other cards from both these lenders. Is there anything I can do with those 2 old closed accounts to recover some age. As I have seen and read 5-6 yrs is considered fairly new and anything I can do in that area should do me good. Since the accounts are closed theres not much you can do. They will continue to report for 10 years and then they fall off. As for 5 - 6 years being fairly new, i would consider that fairly old actually
Well I have checked into the Garden now and hope thats all my CR needs to hit my goal of 800+
Thanks.