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Regular Contributor
Posts: 125
Registered: ‎03-10-2007
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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

Frequent Contributor
Posts: 273
Registered: ‎10-02-2012
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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 Store CC: $850 | AEO Visa: $2,300 | CapOne Quicksilver: $1,700 | Citi Forward for Students $1,500 | Walmart CC $1,350 | Chase Amazon: $500 | PayPal Smart Connect: $500 | Discover iT for Students: $500 | Chase Freedom: $500

Gardening until util 30%
TU Fico: 652 (3/11/14)
Regular Contributor
Posts: 125
Registered: ‎03-10-2007
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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

Established Member
Posts: 85
Registered: ‎02-08-2013
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Re: Credit Card Usage questions

  1. Never pay interest. Period.

Total CL $179k | Budget Management | FICO Scores (TU 693) (EX 718) (EQ 729) | EIDT Me+Spouse Plan
Valued Contributor
Posts: 1,524
Registered: ‎08-17-2008
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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.

$100K in Credit
Last Credit Card App: 11/16/13
Valued Contributor
Posts: 1,524
Registered: ‎08-17-2008
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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.

$100K in Credit
Last Credit Card App: 11/16/13
Established Member
Posts: 85
Registered: ‎02-08-2013
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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.


Total CL $179k | Budget Management | FICO Scores (TU 693) (EX 718) (EQ 729) | EIDT Me+Spouse Plan
Valued Contributor
Posts: 1,524
Registered: ‎08-17-2008
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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

$100K in Credit
Last Credit Card App: 11/16/13
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