I'm trying to figure out how to go about showing a low util on my credit cards. Let's say I charge $35 on Card X on March 15. Statement date is March 23, payment date is April 21. Do I let the $35 hit the statement then pay before the due date? If I let the $35 hit the statement won't I then be assessed finance charges? If I pay the $35 before the statement date what will report to the CRAs? Have I confused anyone else yet?
Hi back, Uborrow-Upay.
Yes, this is very helpful. I'm in the process of paying down my overall debt and have most cards at $0. I'm now trying to set up a schedule for using them to show low util and keep the accounts active so the banks won't be tempted to close. Thanks for the reply - I really appreciate it!
My understanding is that 0 to 9 % utilization gives you the same FICO score. So, no need to pay before the statement date.
IMO, this practice of paying before the statement is only useful when you are planning to apply for new credit or CLI.
If you keep your utilization under 9%, do you still need to pay before the statement date?