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getahead
Posts: 185
Registered: ‎12-02-2011
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I need info from the credit guru's, which is better

I'm trying to boost my score, is it better to PIF before my statement or do I wait for my statement & pay on the due date.  I need to boost my score a little in the next couple of months.


Starting Score: 580
Current Score: Fico EQ-679, Fico TU-670, EX Plus-713, TU Walmart-697, CreditKarma-690
Goal Score: 700 Club


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birjest
Posts: 351
Registered: ‎09-23-2011
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Re: I need info from the credit guru's, which is better

If you have the funds, and if it won't put you in a bind, PIF.  However, the key is to reduce your total utilization of all cards combine down to 10% or less.  Or try not to have no more than 60% on 1 card.  STAY AWAY from 80% on one card..trust me, I had to explained to Discover about my Dell which was over that, but since I wanted then to be my prime card for BT, I was approved 5K.

11/15/13 EX 685(MY FICO) EQ 657(MY FICO) TU 659 (MY FICO).
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RyVision
Posts: 1,346
Registered: ‎04-15-2011
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Re: I need info from the credit guru's, which is better

I'm not a "guru" :smileywink: but I can share what I've read for the majority of opinions from the gurus here (and if you check my page and it shows you info, you'll see I've read a lot, also not just here).  From what I gather, majority guru opinion might be (I'm 80% sure kind of really) that if you wish to show low Utilization, you're going to want to PIF (or as much as you're comfortable with) right before the statement cuts for that account.  If you wait, it will report the higher balance, when paying just a day before, you could have had a lower balance reporting to the CRA's.  I did that with my AMEX before this first statement cut and even before the account showed any balance, I knew what the amount would be and pushed it through from my bank instead of having the AMEX site request payment (then I would have had to of waited). Paying on the due date shows your full utilization for the previous billing cycle (ie: the highest amount minus any credits).

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haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
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Re: I need info from the credit guru's, which is better


getahead wrote:

I'm trying to boost my score, is it better to PIF before my statement or do I wait for my statement & pay on the due date.  I need to boost my score a little in the next couple of months.


If you've pulled a myFICO score report, check the negatives on screen two (where it shows the balance scale.) If high usage of revolving credit is listed as a negative, then definitely pay off your cards (all but one) before each one reports.

 

Let one report a token balance and then pay it off before its due date. (Don't forget, which is easy to do.)

 

It will take a little over a month for all your cards to cycle through their individual statement periods and update, but you'll optimize your scores from the util angle. Around here, we call this playing the util game. Harmless, but it can become addictive. :smileywink:

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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p-
Posts: 2,634
Registered: ‎06-05-2008
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Re: I need info from the credit guru's, which is better


haulingthescoreup wrote:  ...around here, we call this playing the util game. Harmless, but it can become addictive. :smileywink:

That's for sure.  I use a couple cards for all my spending to get the rewards, but always PIF before the statement date.  That way my report shows no or low balance even though I am using them like crazy.

 

What's getting me now is the card DW is using for work expenses.  It is reimbursed every 2 weeks but always seems to have a 20% balance when the statement cuts.  I need to keep pushing CLI's so that the available credit on that card is higher.

  8-12-14: FICO EXP: 797 - EQU: 734 - TRAN: 739 - AVG: 757 - +207 points from JUN 2008 - MY CREDIT JOURNAL

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getahead
Posts: 185
Registered: ‎12-02-2011
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Re: I need info from the credit guru's, which is better

Hi Ryvision,

 

so I should PIF before the statement date, the date that's on my statement right?  So the only way to really do that is to pay in online before the statement is printed?  Sorry, sitll in the learning process.


Starting Score: 580
Current Score: Fico EQ-679, Fico TU-670, EX Plus-713, TU Walmart-697, CreditKarma-690
Goal Score: 700 Club


Take the FICO Fitness Challenge
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p-
Posts: 2,634
Registered: ‎06-05-2008
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Re: I need info from the credit guru's, which is better


getahead wrote:

Hi Ryvision,

 

so I should PIF before the statement date, the date that's on my statement right?  So the only way to really do that is to pay in online before the statement is printed?  Sorry, sitll in the learning process.



The cutoff date is the last day a payment can post if it is included in the statement period.  If you have a 500 dollar balance, and pay 499 before the cutoff, when the statement prints it will show a balance of $1.00.  that statement balance is what's used on your credit report to determine utilization percentage.  Concievably, you could always have a balance on teh card except for the day the statement cuts, and your credit report would never show the balance.

 

If you always wait until your statement is issued, your card will always show a balance on your credit report.

  8-12-14: FICO EXP: 797 - EQU: 734 - TRAN: 739 - AVG: 757 - +207 points from JUN 2008 - MY CREDIT JOURNAL

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RyVision
Posts: 1,346
Registered: ‎04-15-2011
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Re: I need info from the credit guru's, which is better


getahead wrote:

Hi Ryvision,

 

so I should PIF before the statement date, the date that's on my statement right?  So the only way to really do that is to pay in online before the statement is printed?  Sorry, sitll in the learning process.



Using the method (to optimize scores) that Hauling mentioned above. Which is about the best way to use % to bring up scores. Paying online is the only way I know to pay before the statement cuts (is printed\finalized to be mailed out to you). So the answer to both your questions is yes, and yes (at least as far as I know, I don't use a smart phone or call in to pay).  The tricky part is to know what the balance will be at the cut and not just what's showing the day you pay (if something gets tacked on after you pay, it reports, I've had it happen but I'm not worried about it lol).

 

If you have a 10 dollar balance on a card because there was a charge (purchase, interest etc) that wasn't on before you paid, it won't really matter if the card is at least over a 200$ limit (it would be at 5% util), the part that would matter would be it it reported a balance at all (anything other than 0).  One way to avoid that (if you wish to be that exact) might be to check "pending charges" to see if anything is going to be added as well as to not use the card a few days before you intend to pay before the cut. Of course, don't use that card again until after the statement actually finalizes or you'll be negating some of your effort.

 

Oh, the first thing you need to learn, is you'll always be  "still in the learning process" just like me, and everyone else that visits this site. It's why we all come here, there is no person that knows everything about credit, it would be impossible. So you have nothing to be sorry for because you're looking to learn by asking. We all just know different things and at different levels here, Guru's ask questions too. :smileywink:

 

Valued Contributor
p-
Posts: 2,634
Registered: ‎06-05-2008
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Re: I need info from the credit guru's, which is better


RyVision wrote:

... Paying online is the only way I know to pay before the statement cuts ...

 


You want to monitor the cards online - and keep track of your spending.  But you don't have to pay using the credit card's website.  I use my bank's billpay service which for some sends a paper check, or for others electronically pays them.  I like this best because I can track my outgoing payments all in one place instead of having to remember all the electronic payments set to come out of my account.

 

As long as you have the correct information on your payment you should be able to mail them multiple payments.

  8-12-14: FICO EXP: 797 - EQU: 734 - TRAN: 739 - AVG: 757 - +207 points from JUN 2008 - MY CREDIT JOURNAL


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