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New Visitor
Posts: 1
Registered: ‎11-08-2012
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Amount of Charges Matter?

This is a pretty simple question for most of you I would assume, but does the overall amount of charges matter if you pay before the balance reports (I regularly pay my balance down to 8% 3 to 4 days before it reports and then pay off the rest directly after I get the bill)?  That is, is it better to have one payment that gets me to 8% or is it best to have many charges and pay it down immediately if it gets over 8%?  If it doesn't matter the amount of charges, would there be any harm to allowing the charges to accumulate close to my limit and paying it down to 8% 3-4 days before it reports?

New Visitor
Posts: 3
Registered: ‎12-05-2012
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Re: Amount of Charges Matter?

Can anyone help with this question (I forgot my password but can't unlock my account because I have no social security number associated with it)?  To clarify, does the total amount of transactions (not in price but in quantity, IE 1 charge or 15 charges) help to increase my score?  Does it matter the amount (in price) I get up to if I pay prior to my card reporting (say get up to 90% utilization but pay it off to 8% prior to reporting)?  

Valued Member
Posts: 140
Registered: ‎09-26-2012
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Re: Amount of Charges Matter?

oh boy...

New Visitor
Posts: 3
Registered: ‎12-05-2012
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Re: Amount of Charges Matter?

I looked at one of your previous threads and it is similar to mine.  Specifically it was the one about almost maxing out and then paying in full.  The only difference I had was paying PRIOR to reporting. It's an honest question.

Valued Member
Posts: 140
Registered: ‎09-26-2012
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Re: Amount of Charges Matter?


flyinonice4 wrote:

I looked at one of your previous threads and it is similar to mine.  Specifically it was the one about almost maxing out and then paying in full.  The only difference I had was paying PRIOR to reporting. It's an honest question.


I think they like it when you swipe a lot since they get paid for each transaction. I suppose almost maxing out is fine as long as it doesn't 'STICK' on the statement cycle and you take care of it by the statement close. Hope this helps.

New Visitor
Posts: 3
Registered: ‎12-05-2012
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Re: Amount of Charges Matter?

Yea it does help. I never let it report maxed out, but I use my card for almost everything.  I was just wondering if it hurts me to use my card like I do instead of making one small charge and letting it sit until it reports. Most of the time I do not go over 30% utilization at any point in the month (I pay it down to under 9% regardless before it reports), but I was just trying to see what will help me the most in the credit card company's eyes and for my credit score.

Valued Member
Posts: 140
Registered: ‎09-26-2012
0

Re: Amount of Charges Matter?

i think they'll be very happy with many transactions. i use my other cards to for one or two purchases a month as to keep it active. my discover has rewarded me nicely over the years with increases in credit as it's my main card i use for just about everything. discover definitely sees cash flow from me.

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Regular Contributor
Posts: 193
Registered: ‎07-17-2012
0

Re: Amount of Charges Matter?

It doesn't matter.

I have experimented and found you can do it either way.

The sweet spot seems to be to let just 2% report on due date.

Then pay it off in full.

 

I have charged up to 75% and then paid it down and allowed 2% to report.

I have done it in one large payment and I have made 6 payments in a month.

 

What you have to watch for is that some banks and lenders will take a snapshot of your account in the middle of the month and you could be caught with a high usage.

Find out when your card reports and make a note on your calendar.

 

You can tweek your scores it does not take long.

Make sure you are never late and never max out your card. PIF and if you are going to carry a balance make sure it is low and do not carry it for a long time.

The key is to show the lenders you can manage your credit responsibly and that you are not living off your cards constantly moving money around.

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