How to build personal credit, so that I can get unsecured cards ????

[Walt_K]

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@Anonymous wrote:

Hello Everyone, 

I would like high limits so that in the event that I do charge 20-30K some months, my debt-income ratio doesnt go overboard. 

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Isn't it true that even if you maxed out all your cards and your DTI or utilization was very high that month, that if you paid it all down and returned to normal levels the next month, your score would instantly go back to whatever it was previously.  Perhaps a mod or someone better versed in scoring can confirm, but I don't think it matters if you post a big month if you are always paying in full.  You'd have a high utilization for that month and your score might drop, but it would instantly recover the following month.  The only way it would matter is if you were applying for new credit at that exact time.

[Anonymous]

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@Walt_K wrote:

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@Anonymous wrote:

Hello Everyone, 

I would like high limits so that in the event that I do charge 20-30K some months, my debt-income ratio doesnt go overboard. 

---

Isn't it true that even if you maxed out all your cards and your DTI or utilization was very high that month, that if you paid it all down and returned to normal levels the next month, your score would instantly go back to whatever it was previously.  Perhaps a mod or someone better versed in scoring can confirm, but I don't think it matters if you post a big month if you are always paying in full.  You'd have a high utilization for that month and your score might drop, but it would instantly recover the following month.  The only way it would matter is if you were applying for new credit at that exact time.

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Bad assumption.

Perhaps in a perfect world it would, but when you are dealing with creditors who report irregularly (as many do) or erroneously (as many do), you've been rebucketed, you have a pending dispute, there has been a CLD and / or you have a balance reporting on the month after you have paid in full ... there is still a decent chance that your score doesn't increase back to original levels -- or even increase at all. 

If you're worried about being in the most favorable light when applying for more credit, one of the best things you can do is PIF before your statement closes ... and even then you can get hit with a creditor that reports twice a month or reports before statement closes.

[JonStur]

Absolutely cannot assume statement balance gets reported...I just wrote about that... http://ficoforums.myfico.com/t5/Credit-Cards/Warning-Know-which-balances-CC-s-report-to-CRAs/td-p/80...

[Walt_K]

I'm going to start a separate thread so as not to highjack this one.  Thanks.

[haulingthescoreup]

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@JonStur wrote:
Absolutely cannot assume statement balance gets reported...I just wrote about that... http://ficoforums.myfico.com/t5/Credit-Cards/Warning-Know-which-balances-CC-s-report-to-CRAs/td-p/80...

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Yes, this is reported here on the forums a lot.

HSBC bank (not store) cards, Orchard bank cards, and all US Bank cards (bank and store, such as Kroger and Bed Bath and Beyond) report the statement balance as of the last business day of the month.

There's also a pretty obscure non-Discover Discover card that does the same. I don't think many people have it any more. It was one of the rebuilders.

The US Bank cards update pretty promptly, but HSBC/ Orchard often delay reporting. So they report the balance as of the last day of the month, but they might not send it in until a week or two later.