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Does it matter how much I charge as long as I pay it a bit down before statement?

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New Contributor

Does it matter how much I charge as long as I pay it a bit down before statement?

If utilization is my main concern, I just have to worry aboutu whats posted on the statement correct? If I were to have a card limit of 500 but charged 400, I could pay it down to about $50 and still be in the cool when it comes to fico scooring on utilization if i payed it before the statement.
17 REPLIES
Contributor

Re: Does it matter how much I charge as long as I pay it a bit down before statement?

I heard it depends on which card you are using/talking about. In my case, seems to be true. I have charged over 50%-80% of my credit limit on few different cards, and I pay it off before the statement closing dates. My utilization was not hurt through that, then there was one time I tried to leave it until statement closing date, it dropped my score down by more than 30 points.
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FICO pulled by loan officer on 8/3/2009
EQ: 724
EX: 740
TU: 742
Regular Contributor

Re: Does it matter how much I charge as long as I pay it a bit down before statement?

you also have to see if the card reports more than once a month - I have read around the forums that many cards have reported the balance to the CRAs bi-weekly. I do believe that this was probably a once-in-a-million chance...

 

I have utilized my credit about 96% and PIF end of month and have not been dinged. I did forget to pay the balance before the statement cut once and got dinged...

Senior Contributor

Re: Does it matter how much I charge as long as I pay it a bit down before statement?

This depends on few circumstances:

 

1.  Is this a change from your normal spending patterns?  If so, this may alert your ccc to review your account and may interpret increased spending as a sign of financial problems.

 

2.  Current CL trends of your financial institution.  Some banks are cutting back.

 

3.  Some ccc's may report more than 1x monthly, as mentioned by others.  And this may not be consistent, almost random.

 

4.  Other balances.  If you are showing increased balances on more than 1 account, this may flag you as financially distressed, especially if this is not part of your normal spending patterns.

 

5.  The alignment of the stars, your sign, the weather, nothing at all.  Hey, sometimes it just seems that nothing adds up and actions taken by ccc's is a crap shoot.

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09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Established Contributor

Re: Does it matter how much I charge as long as I pay it a bit down before statement?


Credit_repair wrote:

you also have to see if the card reports more than once a month - I have read around the forums that many cards have reported the balance to the CRAs bi-weekly. I do believe that this was probably a once-in-a-million chance...

 

I have utilized my credit about 96% and PIF end of month and have not been dinged. I did forget to pay the balance before the statement cut once and got dinged...


 

Its not just when the statement cuts that you need to know, you also need to know the day they report your balance. I have an HSBC/Orchard card and they do not report when the statement cuts, they report at the end of the month. I made the mistake of PIF'ing the balance before the statement, then a few days after the statement I took my DW out for a nice dinner. That balance from that dinner reported on my CR's. Showed a 30% util that month which hurt my credit score by 21 points from the previous month when it only reported 6%.

 

You just need to know when your creditor reports. Smiley Wink 

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Regular Contributor

Re: Does it matter how much I charge as long as I pay it a bit down before statement?

Hi Pappy, I have 2 Orchard cards, One of them a secured card I paid off and closed last month and the other one I paid down before the end of the month. Does Orchard report to all three of the CRA at the end of the month?
Established Contributor

Re: Does it matter how much I charge as long as I pay it a bit down before statement?

Depending on the limit and usage, I would make a payment every other week to avoid raising a red flag to your lender.
Regular Contributor

Re: Does it matter how much I charge as long as I pay it a bit down before statement?

Ok Thanks
Regular Contributor

Re: Does it matter how much I charge as long as I pay it a bit down before statement?


Pappy214 wrote:

Credit_repair wrote:

you also have to see if the card reports more than once a month - I have read around the forums that many cards have reported the balance to the CRAs bi-weekly. I do believe that this was probably a once-in-a-million chance...

 

I have utilized my credit about 96% and PIF end of month and have not been dinged. I did forget to pay the balance before the statement cut once and got dinged...


 

Its not just when the statement cuts that you need to know, you also need to know the day they report your balance. I have an HSBC/Orchard card and they do not report when the statement cuts, they report at the end of the month. I made the mistake of PIF'ing the balance before the statement, then a few days after the statement I took my DW out for a nice dinner. That balance from that dinner reported on my CR's. Showed a 30% util that month which hurt my credit score by 21 points from the previous month when it only reported 6%.

 

You just need to know when your creditor reports. Smiley Wink 


 

Pappy, just a follow-up question,

 

how would I know when they report the balance to the CR's?

 

I usually pay before the due date (which is one week before the statement cuts)...

 

Do I call the CCC and find out this information?

New Contributor

Re: Does it matter how much I charge as long as I pay it a bit down before statement?

my card is from cap one. Anyone know how they report then?