cancel
Showing results for 
Search instead for 
Did you mean: 

Credit Card Usage questions

Regular Contributor

Credit Card Usage questions

Greetings all. Hopefully this question is pretty clear.

I have a Capital One Secured with a $200.00 limit. I strictly use it for Gas and little odds and ends only. Nothing major goes on this card. The question I have is this.

My statement prints on the 9th of each month. If I pay the bill prior to the statement date, how does that help me build a credit score, especially if the CCC reports once a month?



Starting Score: 605 (Experian); 588 (Equifax); 590 (TransUnion)
Current Score: 626 (Experian); 667 (Equifax); 670 (TransUnion)
Goal Score: 800

Message 1 of 8
7 REPLIES
Frequent Contributor

Re: Credit Card Usage questions


alexhortdog wrote:
Greetings all. Hopefully this question is pretty clear.

I have a Capital One Secured with a $200.00 limit. I strictly use it for Gas and little odds and ends only. Nothing major goes on this card. The question I have is this.

My statement prints on the 9th of each month. If I pay the bill prior to the statement date, how does that help me build a credit score, especially if the CCC reports once a month?

I've read that 1% to 9% maximizes your score. If the card is your only card, don't pay it before the statement date or else your util will report as 0%. Instead, pay it down so that there is at least a 2$ balance on the card by the statement date. 

AE CC: $1,050 | AEO Visa: $1,890 | Cap1 QS: $2,100 | Chase Freedom: $1,000 | Citi Forward: $1,500 | Citi Double Cash: $1,000 | Discover iT: $500 | GameStop: $1,650 | Overstock: $1,700 | PayPal Smart Connect: $1,500 | Walmart $2,200

TU (Discover): 663 | EQ (Citi): 651
Message 2 of 8
Regular Contributor

Re: Credit Card Usage questions

But what happens if I pay after the statement has posted?  So, if I have about $170.00 on the card, get my statement (electronic) along with the due date, then pay it all at one time.....will that help with utilization?

 




Starting Score: 605 (Experian); 588 (Equifax); 590 (TransUnion)
Current Score: 626 (Experian); 667 (Equifax); 670 (TransUnion)
Goal Score: 800

Message 3 of 8
New Contributor

Re: Credit Card Usage questions

  1. Never pay interest. Period.
Message 4 of 8
Valued Contributor

Re: Credit Card Usage questions

No because it will report 170/200 which is 85%. You must pay before the statement cut to maximize utilization for FICO scoring. Its less than 9% across all cards.

But I think its good you reported 85% because its showing your are using available credit and when you pay it off its telling lenders you are responsible.

Last Pulled EQ: 809
Last Credit Card App: 02/05/2016
Last CLI: 02/06/2016
Find Me: Gardening
Message 5 of 8
Valued Contributor

Re: Credit Card Usage questions

Charged - Some people do not have the luxury of not paying interest. This is why credit cards are made.

Just be responsible with credit and dont carry large balance over time if possible. If you are look for a low interest CC.

Last Pulled EQ: 809
Last Credit Card App: 02/05/2016
Last CLI: 02/06/2016
Find Me: Gardening
Message 6 of 8
New Contributor

Re: Credit Card Usage questions


chnceit wrote:
Charged - Some people do not have the luxury of not paying interest. This is why credit cards are made.

Just be responsible with credit and dont carry large balance over time if possible. If you are look for a low interest CC.

I understand, there's different situations where you might not be able to pay them off like if you're living beyond your means OR have unexpected expenses that savings doesn't cover. I myself have quite a bit of debt but will be out in 2 years. 

 

I say rule #1 is to never pay interest, because I know first hand how being buried alive feels. Just a few months ago I was paying $765/mo in interest. If I can help someone by telling them not to pay interest / not to carry balances, and prevent them from getting into the same boat I'm in, then I've served a purpose.

Message 7 of 8
Highlighted
Valued Contributor

Re: Credit Card Usage questions

Good advice and thats great you paid your debt.

But OP just dont dig your self in a hole and the utilization game is for short term. Build your hood history because this is more important

Last Pulled EQ: 809
Last Credit Card App: 02/05/2016
Last CLI: 02/06/2016
Find Me: Gardening
Message 8 of 8