Credit Cards

[engr43]

I plan to make large quarterly tuition payments on CSP.  My limit is 12k, payments will be 11k each, and will PIF every month.  I have seen different postings on how CSP reports utilization.  I have 21k of credit on other cards with minimal utilization and excellent credit score.  Thoughts?  Thanks.   

[LS2982]

That's a lot to put on one card, have you ever maxed it before and PIF?

[engr43]

No, just opened the card.  If I make two 5.5k payments on CSP a week apart and PIF immediately after each is that better?  The remaining option is to split some of the payment via check (frustratingly, they don't take AMEX, on which I have a 15k limit).  Thinking maybe 3k check, then only 8k on the card.  Losing some rewards points, but I will likely be applying for student loans in the next year so want my score to be pristine.

[Cdnewmanpac]

UtilizationUtilization is only based on the balance reported to cra (usually your statement balance), not your high balance between statements. If you pay in full before your statement posts, it will show a zero balance and zero utilization. Also, utilization contribution to fico score is based only on what is reporting at the moment the score is pulled. Past utilization has no impact. So as long as you don't let an 11k balance report the month you apply for loans, it won't matter. Personally, I've paid all my grad school tuition on my chase sw card, even using the npsl feature to pay above my limit last month. I pay the balance off the day the charge posts to my account. Chase doesn't seem bothered, as they approved a ~7k charge on a card with a 5k limit. I got about 20k in rapid rewards points and the credit reporting agencies just show a zero balance. 

[improvingmycredit]

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Cdnewmanpac wrote:

UtilizationUtilization is only based on the balance reported to cra (usually your statement balance), not your high balance between statements. If you pay in full before your statement posts, it will show a zero balance and zero utilization. Also, utilization contribution to fico score is based only on what is reporting at the moment the score is pulled. Past utilization has no impact. So as long as you don't let an 11k balance report the month you apply for loans, it won't matter. Personally, I've paid all my grad school tuition on my chase sw card, even using the npsl feature to pay above my limit last month. I pay the balance off the day the charge posts to my account. Chase doesn't seem bothered, as they approved a ~7k charge on a card with a 5k limit. I got about 20k in rapid rewards points and the credit reporting agencies just show a zero balance. 

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+1000

Don't worry about your utilization in lew of getting your rewards.  As long as you pay it off as planned then I say go for it!!  As  @ cdnewmanpac states- you only need worry about this if you were apping more credit before the next statement cuts with the high utilization.  What a GREAT way to gain quick rewards!  Now if you were using a NEW Amex Charge product in such a way- you might get FR'd.  lol

[Koop10010]

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improvingmycredit wrote:

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Cdnewmanpac wrote:

UtilizationUtilization is only based on the balance reported to cra (usually your statement balance), not your high balance between statements. If you pay in full before your statement posts, it will show a zero balance and zero utilization. Also, utilization contribution to fico score is based only on what is reporting at the moment the score is pulled. Past utilization has no impact. So as long as you don't let an 11k balance report the month you apply for loans, it won't matter. Personally, I've paid all my grad school tuition on my chase sw card, even using the npsl feature to pay above my limit last month. I pay the balance off the day the charge posts to my account. Chase doesn't seem bothered, as they approved a ~7k charge on a card with a 5k limit. I got about 20k in rapid rewards points and the credit reporting agencies just show a zero balance. 

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+1000

Don't worry about your utilization in lew of getting your rewards.  As long as you pay it off as planned then I say go for it!!  As  @ cdnewmanpac states- you only need worry about this if you were apping more credit before the next statement cuts with the high utilization.  What a GREAT way to gain quick rewards!  Now if you were using a NEW Amex Charge product in such a way- you might get FR'd.  lol

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+2  Don't worry about utilization, charge the whole thing and just make sure to pay before the due date.  If you pay before the statment date it won't even report a high current balance; even if you wait until after the statement date your score is only down for one month, next month it bounces right back up.