Best way to pay a credit card, so that you are more likely to get CLI

[Anonymous]

Hello,

I was wondering what is the best way to pay my credit card so that it appealing for the banks to give me a CLI.  I have several ways I figured I can pay my bill, I can see how each one has a plus depending what the bank is looking for. Not what is neccessarily increases the FICO score, but what is more appealing for CLI increases, if there is a difference.

1. I run up my card to 80%-90% each and Pay In Full soon as the bill is created before the due date

2. I only run up the card to 10% or less and Pay in Full soon as the bill is created before the due date

3. I use the card up tp 80% but make several payments during the month so that when the bill is generated it is always 0.00

4. I only use the card to 10% but make payments before bill is generated so its always a 0.00 balance on the bill

Any helpful infomration is greatly appreciated.

Thanks.

[SouthJamaica]

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@Anonymous wrote:

Hello,

I was wondering what is the best way to pay my credit card so that it appealing for the banks to give me a CLI.  I have several ways I figured I can pay my bill, I can see how each one has a plus depending what the bank is looking for. Not what is neccessarily increases the FICO score, but what is more appealing for CLI increases, if there is a difference.

1. I run up my card to 80%-90% each and Pay In Full soon as the bill is created before the due date

2. I only run up the card to 10% or less and Pay in Full soon as the bill is created before the due date

3. I use the card up tp 80% but make several payments during the month so that when the bill is generated it is always 0.00

4. I only use the card to 10% but make payments before bill is generated so its always a 0.00 balance on the bill

Any helpful infomration is greatly appreciated.

Thanks.

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I think the best usage for that purpose would be using the card from 10 to 25%, but always paying it down, even before the statement cut.

[Anonymous]

Thanks for the info

[Anonymous]

Letting the statement cut at $0 is bad for your score though. It looks like you never used the card!

[Chris679]

Lots of debate on this topic. I tend think letting the full balance report and PIF after the statement cuts is the best approach for CLI.

[Anonymous]

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@Chris679 wrote:
Lots of debate on this topic. I tend think letting the full balance report and PIF after the statement cuts is the best approach for CLI.

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I use this approach. Let the full amount report then once the statment generates ill pay in full. The only exception is if im micro manging my scores and will be apping, I'll pay before the statment cut just to tweak the utilization down obvisouly so it wouldnt report a high balance and for scoring purposes. Other then that, I'm not a big fan of paying before the statment cuts. 

[nachoslibres]

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@Anonymous wrote:

Letting the statement cut at $0 is bad for your score though. It looks like you never used the card!

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A lot of people (myself included) allow all our credit cards (but one) to report $0 balances - and banks can tell themselves if a card is being used whether or not the balance is $0 when the statement cuts, how often it is being paid, etc.  All my Chase cards get around $500 put on each of them monthly yet they never report a balance - it would be crazy to think Chase would think I never used these cards because of that.

[Viva-LV]

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@nachoslibres wrote:

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@Anonymous wrote:

Letting the statement cut at $0 is bad for your score though. It looks like you never used the card!

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A lot of people (myself included) allow all our credit cards (but one) to report $0 balances - and banks can tell themselves if a card is being used whether or not the balance is $0 when the statement cuts, how often it is being paid, etc.  All my Chase cards get around $500 put on each of them monthly yet they never report a balance - it would be crazy to think Chase would think I never used these cards because of that.

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I would agree here, paying down to zero balance.  I often see "too many accounts with balances", even though they may be small balances.  60% (or more) of my cards have zero balances (utilization), but I believe in paying before the statement date.

[Anonymous]

I pay mine before the statement cuts... I hate seeing even 5 points down due to utilization...

[Anonymous]

They can tell you use your cards even if you pay them off before the bill gets generated.

You will see something like the below on your credit report.

Balance History - The following data will appear in the following format: account balance / date payment received / scheduled payment amount / actual amount paid

Dec 2016: $177 / December 1, 2016 / $38 / $78

So even if the account balance and scheduled payment amount is 0 cause you paid before the bill, the last nuumber is actual amount paid and this will show your payments for the month.