Reply
Established Member
Posts: 51
Registered: ‎11-20-2012
0

How to proceed with CC

Hi! So I recently apped for a WM CC in Oct. was approved. I'm in the process of rebuilding. So, I've used it a few times and paid it off within a week. Then last time I charged about $60 and left $20 after payment. Now, the statement has cut. It says I owe $20 by 12/13. Ok, so what do I do now? I know I have to pay by the due date of course. But once I pay say if I pay today. When can I use my card again? Is there some wait time or something? Thanks. 

Valued Contributor
Posts: 1,895
Registered: ‎11-17-2012
0

Re: How to proceed with CC

If you're talking about using your card in general, yes you can still use it even if you have a balance! There's no "wait" between statements, so you can spend all you like until the due date and then pay your $20!

 

If you mean if there's a hold on your account (aka if you pay today) they MAY place a hold on part of your available limit. Different companies have different hold payments. The most frequently seen is "double trouble" (for you, that would mean even though you made a payment for $20, until it clears, there will be an extra deduction of $20 from your available credit!) As long as it doesn't eat up your credit limit, you can still make purchases :smileyhappy:

 

All the best!

Capital One Quicksilver World Mastercard $20k | JCPenney Gold $10k | Shell Drive for Five $800 | Chase Freedom Visa Signature $9.8k | TD Bank Easy Rewards Visa Signature $5k | Chase Sapphire Visa Signature $10k | American Express Blue Sky $13.7k | Discover IT $9.5k | SavingStar American Express $14.8k | American Express BCE $11.3k

FICOS: EX 764 EQ 704 TU 750 VantageScore 3.0: EX 745 EQ 749 TU 749 Credit Sesame (EX) 749 Credit.com (EX) 788
Moderator Emeritus
Posts: 7,225
Registered: ‎09-16-2011
0

Re: How to proceed with CC


FluteLadyWHS12 wrote:

Hi! So I recently apped for a WM CC in Oct. was approved. I'm in the process of rebuilding. So, I've used it a few times and paid it off within a week. Then last time I charged about $60 and left $20 after payment. Now, the statement has cut. It says I owe $20 by 12/13. Ok, so what do I do now? I know I have to pay by the due date of course. But once I pay say if I pay today. When can I use my card again? Is there some wait time or something? Thanks. 


Hi!  Welcome to myFico forums!

 

There is usually not a wait time... you can keep using your card and paying in full as long as you have available credit on the card.  Some lenders will place a hold on the first few payments..  (capital 1 is notorious for this)

With GE wal mart you'll be just fine.   If your limit is $500 and you have a $20 balance, you could go purchase $450 worth of goods without any issue.

 

Best of luck!


Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
Platinum Spade Garden Club Member: App Free since 1/1/13. No more apps til who knows when?
MyFICO Fitness Goal: 800s Club!



Take the myFICO Fitness Challenge
Established Member
Posts: 51
Registered: ‎11-20-2012
0

Re: How to proceed with CC

Thanks! I'll be going in the store to pay it today, and then purchase some things and then pay that off within the week! 

Established Member
Posts: 51
Registered: ‎11-20-2012
0

Re: How to proceed with CC

So, I was just on the phone with my CU because I want to refinance my car loan. Anyway, she was talking to me about a credit card and mentioned that I shouldn't pay the  whole $20 that I should leave $5 on so it will report a balance and such. Is this true? Should I do this? Don't I have to pay the amount due or wont it charge me late fee? Or is it I just have to pay to avoid interest charge? Agh, I'm so confused!

Moderator Emeritus
Posts: 4,875
Registered: ‎11-02-2010
0

Re: How to proceed with CC


FluteLadyWHS12 wrote:

So, I was just on the phone with my CU because I want to refinance my car loan. Anyway, she was talking to me about a credit card and mentioned that I shouldn't pay the  whole $20 that I should leave $5 on so it will report a balance and such. Is this true? Should I do this? Don't I have to pay the amount due or wont it charge me late fee? Or is it I just have to pay to avoid interest charge? Agh, I'm so confused!


 

Anecdotal evidence suggests that your FICO score is improved by having one credit card report a small balance, between 1% - 9% of your CL. So, if you have a card with a $500 CL, letting a balance of $5 report on that card -- and only that card -- would show an overall utilization of 1%. I experimented one month and allowed 0% util to report, and lost 3 points; the next month, I allowed 1% to report and got back the 3 points. So, it does seem to have some effect.

 

Now, it is not a good idea to refrain from paying your statement balance in full just so that you report a small balance; you'd wind up paying interest if you did so, and you really don't want to do that if you can avoid it. But, if you use your card frequently through the month, you can allow a small balance to report and then pay it off right away after the statement cuts. Then, proceed with your normal monthly charges, paying off all but a small amount before the statement cuts. Lather, rinse, repeat.

 

Do bear in mind that if you don't report a balance, it will not hurt your history with your card issuer; it will only affect your FICO score as mentioned above, and most likely it will only marginally. The most important thing for you to focus on is to pay your bill on time, every time. Utilization changes from month to month, and FICO has no memory of these changes; high util one month can be corrected by paying down balances and reporting low utilization the next. Payment history, on the other hand, reports for seven years, so make sure to keep it clean! Best wishes.

 


Current Scores: EQ 775 (03/04/2014), EX 756 (03/01/2014), TU 760 (03/01/2014)
Ruby Spade Garden Club Member - Last App: 03/04/2013 - No apps until 2014
Cards: Cap1 Venture 6.4k, Cap1 Quicksilver MC 1.75k, BankAmericard 1-2-3 Visa Signature - UCF Alumni Association 5k, Discover 7k, Citi Diamond Preferred MC 10.35k, Wells Fargo Rewards Visa 7k, Chase Freedom 5k, Chase Ink 7.5k, Amex Green NPSL, Dillard's Amex 7.5k, JC Penney 7.5k, Kay Jeweler's 5.1k
Established Member
Posts: 51
Registered: ‎11-20-2012
0

Re: How to proceed with CC

^^^^Thank you for this! 

Moderator Emeritus
Posts: 4,875
Registered: ‎11-02-2010
0

Re: How to proceed with CC


FluteLadyWHS12 wrote:

^^^^Thank you for this! 


You're most welcome. :smileyhappy:

 


Current Scores: EQ 775 (03/04/2014), EX 756 (03/01/2014), TU 760 (03/01/2014)
Ruby Spade Garden Club Member - Last App: 03/04/2013 - No apps until 2014
Cards: Cap1 Venture 6.4k, Cap1 Quicksilver MC 1.75k, BankAmericard 1-2-3 Visa Signature - UCF Alumni Association 5k, Discover 7k, Citi Diamond Preferred MC 10.35k, Wells Fargo Rewards Visa 7k, Chase Freedom 5k, Chase Ink 7.5k, Amex Green NPSL, Dillard's Amex 7.5k, JC Penney 7.5k, Kay Jeweler's 5.1k
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.