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Lovemecredit
Posts: 4
Registered: ‎09-11-2012
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Dumb question sorry

Ok I have a bank of America cash rewards 123 card with a 1500 limit I use it a lot close to the limit and pay it off every month and do the same thing every month but this isn't looking good on my credit what am I doing wrong? Thank you in advance
Established Contributor
gettnthere
Posts: 912
Registered: ‎06-14-2012
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Re: Dumb question sorry


Lovemecredit wrote:
Ok I have a bank of America cash rewards 123 card with a 1500 limit I use it a lot close to the limit and pay it off every month and do the same thing every month but this isn't looking good on my credit what am I doing wrong? Thank you in advance

you say you pay in full every month right? do you PIF on the due date or before the statement close date?



Starting Score: EQ 609, EX 633(Fako), TU 700
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New Visitor
Lovemecredit
Posts: 4
Registered: ‎09-11-2012
0

Re: Dumb question sorry

I pay a couple days before the bills is due every month on the 12th

Valued Contributor
jamesdwi
Posts: 1,947
Registered: ‎09-16-2011
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Re: Dumb question sorry

[ Edited ]

Lovemecredit wrote:
Ok I have a bank of America cash rewards 123 card with a 1500 limit I use it a lot close to the limit and pay it off every month and do the same thing every month but this isn't looking good on my credit what am I doing wrong? Thank you in advance

Pay In Full before the statement cuts, then it reports zero on your credit reports. Letting the card report over 90% of its limit is maxing it out and is a sign that aren't using your credit wisely. 

 

If you plan on doing the same every month, you should look into getting a charge card, for example AMEX Zync with good credit you get No Preset Limit, and it grows with you. You do have a limit but its not reported, so you can use the card as much as your income allows, and pay it off every month. If it reports it doesn't matter its not counted in your utilization, because it has to be paid off every month. 

 

Welcome to the Forums. 

 

 

 


Cards: Chase Southwest 20k & CSP 10k & Freedom 6.6k & Amtrak 4.6k, FNBO DISC 14.9k Oregon Duck 5k, & AMEX BCP 15k & Hilton Surpass 7.5k & Zync NPSL, Sams Club MC 10k, Paypal Extras MC 6k, CapOne QS 2.5k, QS 750, Amazon 3.9k, Walmart 4.5k, Citi Simplicity 7k, HHonors Gold 1k (moved 5k CL to Simplicity), Discover IT 6.5k and a nice stack of store cards.
Last APP 4/26//2014 no plans for new credit I think I have enough.
Valued Contributor
ryanbush
Posts: 1,292
Registered: ‎08-19-2012
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Re: Dumb question sorry

it doesn't matter as long as you pay it on time each month... if you decide to apply for new credit pay it in full before the statement closes so it reports a zero balance for the highest possible fico score

 

hope that help

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Senior Contributor
bichonmom
Posts: 3,318
Registered: ‎05-05-2011
0

Re: Dumb question sorry


Lovemecredit wrote:
Ok I have a bank of America cash rewards 123 card with a 1500 limit I use it a lot close to the limit and pay it off every month and do the same thing every month but this isn't looking good on my credit what am I doing wrong? Thank you in advance

The problem is that you're paying by the due date, but since the statement balance reports to the CRAs, it looks like you're maxed out. Unfortunately, FICO doesn't distinguish between a CC that has a high balance with a small pmt paying on it monthly, and when you charge up the CC and PIF each  month.

 

That's why many people here PIF their stmt BEFORE it cuts. This would end up being a few weeks before your due date. So, if your stmt cuts on the 15th, let's say. Then you go online and pay the balance on the 13th or 14th, and be sure not to use the card until after the 15th. Then when your statement cuts, the bal w/be zero, and that will be reported to the CRAs.

 

It may not make a lot of sense, but that's the way FICO works. If you do that, and  your overall CR is in good shape (no baddies, lates, etc.), then you would probably be able to CLI. If you're going to charge and PIF $1500 a month, ideallly, you want your CL to be around $10 to 15000. That way, when your statement cuts WITH the balance of $1500, it's only around 10% of your total CL. That won't have nearly the effect on your FICO as it does now. You may not get $10k from $1500, but that would be the eventual goal.

 

 

 

 

~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*
EQ FICO 750 | TU FICO 761 (Walmart) | EX FAKO 767 | Goal: 800+

Edits, funky spacing and spelling due to my iPad not getting along with the forum editor!

New Visitor
Lovemecredit
Posts: 4
Registered: ‎09-11-2012
0

Re: Dumb question sorry

ItIt's says my statement close date is the 15 th so it closes three days after its due if my balance was at zero on te 15 iwouldjust have to make it at zero on oct 15th again even though I use it all month it would report zero and help my score

Valued Contributor
jamesdwi
Posts: 1,947
Registered: ‎09-16-2011
0

Re: Dumb question sorry


Lovemecredit wrote:

ItIt's says my statement close date is the 15 th so it closes three days after its due if my balance was at zero on te 15 iwouldjust have to make it at zero on oct 15th again even though I use it all month it would report zero and help my score


pay it down to zero on the 13th or 14th, and then it will report zero to the Credit Reports. This is one of the reason people carry more than one card, so they can switch to another card the day or two before there statement closes.  

 

 


Cards: Chase Southwest 20k & CSP 10k & Freedom 6.6k & Amtrak 4.6k, FNBO DISC 14.9k Oregon Duck 5k, & AMEX BCP 15k & Hilton Surpass 7.5k & Zync NPSL, Sams Club MC 10k, Paypal Extras MC 6k, CapOne QS 2.5k, QS 750, Amazon 3.9k, Walmart 4.5k, Citi Simplicity 7k, HHonors Gold 1k (moved 5k CL to Simplicity), Discover IT 6.5k and a nice stack of store cards.
Last APP 4/26//2014 no plans for new credit I think I have enough.
New Visitor
Lovemecredit
Posts: 4
Registered: ‎09-11-2012
0

Re: Dumb question sorry

Ok this will help thank you for all the help

Senior Contributor
youngandcreditwrthy
Posts: 6,242
Registered: ‎08-16-2012
0

Re: Dumb question sorry

You need a higher credit limit to lower reported utilization ... maybe to add an extra card or two. Looking maxed out is BAD!!!
Best of luck:-)
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