07-18-2013 11:45 AM
I acquired several new cards this month. (With the exception of First Premier, all of the cards in my siggy are new). I've come across the quoted conventional wisdom below a few times and am gearing up to follow this advice; however, I'm having trouble strategically selecting a card to let report a balance. Aside from selecting one that reports to all three agencies, are there any other factors I should consider? Also, should it always be the same card? Thanks in advance for any advice offered.
"The key is having one of them always report a zero balance each month by paying any amount charged before the statement posts. On the other card have a small amount (1-9% utilization) report on the monthly statement and then always PIF before the due date to avoid finance charges. IMO it doesn't matter which card you choose for each action."
07-18-2013 11:51 AM
07-18-2013 11:56 AM
Which cc is up to you. It doesn't have to be the same card.
Yes. And, if there is a card you use very frequently, it is sometimes almost impossible to avoid it reporting a balance (pending charges posting unpredictably). So in my case in nearly always is the same card reporting a balance, but it doesn't have to be.
The other point is that you don't always need to follow this advice, if you don't plan to app, and are not looking for auto credit-line-increases, it really doesn't matter. The score takes a snapshot of utilization, so if you have 5 balances reporting one month, and one the next, your score would be the same as if you had just one report both months. So don't go to extremes to meet the advice!
07-18-2013 12:06 PM
As 09Lexie and longtimelurker mentioned, it's a matter of preference. The key thing is knowing your spending habits so you do not become overextended, learning of the closing dates and due dates for all your new accounts so you can track these things periodically, etc. Also, depending on which card(s) would provide a maximum rewards benefit in the short or long term, use the one(s) that would do so or rotate as appropriate. Bottom line, what's been known to work for a lot folks (optimal reporting/util%) is usually letting one CC or TL report monthly with a balance while the others report 0 - just watch your utilization.
07-18-2013 12:43 PM
Thank you! @09Lexie @longtimelurker @FinStar
Your feedback is very helpful. I figured I was probably overthinking it, but I probably acquired too much at once and am adjusting to a new way of spending and tracking expenses and payments. I've taken the steps of finding out the statement and reporting dates for the new cards and I think I've got a handle on which one I will let report. Managing a busy household with 4 kids, sports schedules, and a high-demand job, I get nervous about tracking or forgetting important deadlines which is why I've been a cash-in-hand spender with one low limit cc for so long. I've bitten off quite a bit with the new CCs and want to make sure I manage it all correctly.
07-18-2013 12:45 PM
07-18-2013 12:57 PM
Thanks again @Lexie09
I've got Manilla all set up with my accounts. I signed up for an account and logged the info earlier this week after reading reviews on this site. I also set up an Excel spreadsheet for tracking everything in case I end up not liking Manilla. Now, I wait
07-18-2013 01:47 PM
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.