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Member
buttercup1
Posts: 9
Registered: ‎09-23-2011

Credit Card Balances

Just wondering how soon to pay off small balances on cc's. Should you pay it off as soon as that transaction posts or wait a few days? Just wanting to know how better to boost my credit score.

Valued Contributor
dodfire
Posts: 1,453
Registered: ‎04-14-2012

Re: Credit Card Balances

The CRA likes to see "some" usage of your card or cards. 

What the score difference would be...???

I will wait to see if someone else has an answer.

*8/10/13
Mega Contributor
LS2982
Posts: 15,434
Registered: ‎04-09-2011

Re: Credit Card Balances


buttercup1 wrote:

Just wondering how soon to pay off small balances on cc's. Should you pay it off as soon as that transaction posts or wait a few days? Just wanting to know how better to boost my credit score.


You can pay it off as soon as it posts. It makes no difference when you pay as long as you pay before the statement closing date. That is when it reports to the CRA's. If you have multiple cards. 1 cards needs a 1-9% balance reporting and the others at $0.




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Valued Contributor
SnackTrader
Posts: 1,563
Registered: ‎09-15-2012

Re: Credit Card Balances

Here's a recent thread that answers some really good questions about credit card usage. Inside my last post is a link to another thread, which then links to multiple other threads. Basically, if you just keep clicking the links you can learn a lot about this thing we call "utilization".

http://ficoforums.myfico.com/t5/Credit-Cards/Help-understanding-credit-cards-amp-the-best-way-to-use...

However, at the end of the day the best way to improve your score is continue paying your bills on time and letting your accounts age. If you have further strategy questions, feel free to post them!

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