06-30-2009 11:30 PM
07-01-2009 12:16 AM
Would it be a bad idea to use your credit card for a purchase(s) and then paying it off at the end of the day through online bill pay on a day to day basis?
Well, it's not a bad idea per se, but I don't know why you'd want to do it that way. If you're trying to have your account report a zero balance, then you only need to pay in full on the day (or the day before) your statement closes. Paying every day seems like a lot of unnecessary work.
One problem that you might get into with your strategy is that sometimes the charges don't post to your account right away. You'd have to wait until those charges posted before paying them; you usually can't overpay your credit card account. For some kinds of charges, like gasoline or restaurant purchases, there might be a temporary authorization for more than you actually spent. Eventually, the temporary authorization will disappear, but it could cause some confusion to you if you're trying to figure out your end-of-the-day balance.
07-01-2009 12:51 AM
07-01-2009 09:10 AM
9% or lower utilization across all your revolving accounts is expected to generate the highest score for this element of the FICO score formula. It's generally accepted that it is better to have one account reporting a small balance than to have several accounts reporting small balances, even if your cumulative utilization is 9% or less.
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