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Established Member
Posts: 20
Registered: ‎01-13-2010
0

Balance maintenance question

Hi, I have a question about keeping balances low. I read some of the important posts about letting credit cards report balances below 10%, rather than reporting 0% usage. I got approved for an Orchard Bank unsecured card and a Citi secured card, and I don't want to blow it, I realy need to ace the whole usage/reporting thing. So my question is, for example my Orchard card has a limit of $300. Does that mean I charge something for $10, let the bill arrive in the mail, then pay it off, rather than using it and paying it off before the bill even arrives? I hope I'm asking this the right way. Thanks...

 

Ryan

Senior Contributor
Posts: 4,267
Registered: ‎05-01-2008
0

Re: Balance maintenance question

You can use both cards as you see fit, just pay ONE in full before the statement cuts & on the other ....before statement cuts, pay all but about 7%. (which would be a balance of $21.00 reporting on the $300.00 card)  <---that is a FICO happy #  :smileywink:


Starting Score: 02/2015 TU 709 - EQ 676 - EX 729
Current Score: 02/2015 TU 709 - EQ 676 - EX 729
Goal Score: 850

Bury me in the garden...last app 12.19.14

Frequent Contributor
Posts: 368
Registered: ‎09-14-2009
0

Re: Balance maintenance question

so you should have a small balance reporting monthly?

EQ Starting Score: 579 | TU Starting Score: 568
EQ Current Score: 650 | TU Current Score: 653
EQ Goal Score: 1000 | TU Goal Score: 1000


Established Member
Posts: 20
Registered: ‎01-13-2010
0

Re: Balance maintenance question

I'm sorry, I'm such a credit card moron. Does that mean I use one card, then go to their website and pay it off immediately? Then use the other card and receive the bill in the mail (for my 7% usage) and then pay that amount as usual? Thanks...

 

Ryan

Regular Contributor
Posts: 237
Registered: ‎08-02-2009
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Re: Balance maintenance question

Ideally in this case, you only want to use a single credit card (is there a reason to use multiple all the time anyway?).  So, whatever card you want to report a balance on (keep in mind the goal here is to not pay interest) you'll want to leave that $ amount on the card until the day after the statement date.  This is when most CCC's report to the credit bureau.  With your other card, you'll want to use it every now and again (at least few months) just to make sure the card stays active.

 

I have a reward zone master card which reports the very last day of the month (so i always know when to tidy up my balance).  I then pay in full after.


EQ (11/16/2007): 573

Starting Score (1/1/2010): EQ: 712 -- TU: 726
Current Score: EQ: 748 (12/22/11) -- TU: 726 (1/7/10) -- TU04: 701 (1/27/10) -- EX: 747 (1/27/10) (LO)
Goal Score: EQ: 760


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Moderator
Posts: 17,292
Registered: ‎07-14-2009
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Re: Balance maintenance question


theclarkman wrote:

I'm sorry, I'm such a credit card moron. Does that mean I use one card, then go to their website and pay it off immediately? Then use the other card and receive the bill in the mail (for my 7% usage) and then pay that amount as usual? Thanks...

 

Ryan


It doesn't have to be immediately. Just make sure you PIF before the statement posts each month. On the other card wait until the statement posts then PIF before the due date to avoid any finance charges. You need to know your monthly statement dates for this to work.

 

 

From a BK years ago to:
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802

You can do the same thing with hard work.

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