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Contributor
Sitori
Posts: 268
Registered: ‎10-25-2012

Newbie Question......

Hi everyone!

I have some questions that are probably pretty stupid but since I'm in the process of trying to build credit and this is my first actual card, I do NOT want to mess it up and I want to make sure I'm doing this right.

 

I heard that I have to wait to until the bill "posts" to pay it, but also  pay it earlier than the actual due date. I have my first amazon store card bill (electronically) but when I go to view the statement, it says "there are no e-bills available for this account."  But it's showing this...

 

Account Summary

 
Current Balance* :$157.22 
Minimum Payment Due :$25.00Make a Payment
Payment Due Date :12/05/2012 
 
 
 
Available Credit* :$1,042.00Request Increase
Total Credit Limit :$1,200.00 
 
 
 
Last Payment :$0.00 
Last Payment Posted : View Online
Payment History
 
 
 
 
Last Statement Date :11/12/2012 
Last Statement Balance :$157.22View Statement

 

Why does it give me the option to click on "view statement" if there are no available statements?  Is the statement the detailed bill?  what exactly does that mean?

 

When do I wait to make a payment? Do I wait for the "statement date" and then pay it once I see that? So since it's showing "last statement date" as 11/12/2012, should I pay it off now? Or do I wait until its closer to the due date?  I don't get how this works lol. I don't want to pay it off before it gets reported right?

 

 

Also...Should I close my FP account now that I have other lines of credit? I wasn't sure since I opened that one in July, and these new accounts just opened this month. If I need to apply for carecredit in the spring, I wasn't sure if I'd have a long enough credit history if I close the FP. 

 

Thanks for the help!

 


-------------------------------------------------------------------------------------------------
EQ 701, TU 685, EX ?
Wallet:
Amazon store $2500(10/12), Cap1 $1500 (10/12), Discover $1700 (11/1/12).
Valued Contributor
nicholasyud
Posts: 1,734
Registered: ‎08-13-2012

Re: Newbie Question......


Sitori wrote:

Hi everyone!

I have some questions that are probably pretty stupid but since I'm in the process of trying to build credit and this is my first actual card, I do NOT want to mess it up and I want to make sure I'm doing this right.

 

I heard that I have to wait to until the bill "posts" to pay it, but also  pay it earlier than the actual due date. I have my first amazon store card bill (electronically) but when I go to view the statement, it says "there are no e-bills available for this account."  But it's showing this...

 

Account Summary

 
Current Balance* :$157.22 
Minimum Payment Due :$25.00Make a Payment
Payment Due Date :12/05/2012 
 
 
 
Available Credit* :$1,042.00Request Increase
Total Credit Limit :$1,200.00 
 
 
 
Last Payment :$0.00 
Last Payment Posted : View Online
Payment History
 
 
 
 
Last Statement Date :11/12/2012 
Last Statement Balance :$157.22View Statement

 

Why does it give me the option to click on "view statement" if there are no available statements?  Is the statement the detailed bill?  what exactly does that mean?

 

When do I wait to make a payment? Do I wait for the "statement date" and then pay it once I see that? So since it's showing "last statement date" as 11/12/2012, should I pay it off now? Or do I wait until its closer to the due date?  I don't get how this works lol. I don't want to pay it off before it gets reported right?

 

 

Also...Should I close my FP account now that I have other lines of credit? I wasn't sure since I opened that one in July, and these new accounts just opened this month. If I need to apply for carecredit in the spring, I wasn't sure if I'd have a long enough credit history if I close the FP. 

 

Thanks for the help!

 


1. Closing statement date : 11/12/2012 Paid this before its even post and leave a couple dollars report. So let every month statement on 12/12/2012 ( wow the end of the world ;( . If you used 200 then paid 190 before the 12/12/2012. So next month statement they post £10 balance. Then paid this $ 10 balance again on 14 or 15. That's kinda complicated and confuse but that's how most folks here do and of course you should paid 157 balance ASAP before they hit late fees and stuff.

 

On top of that you shouldn't closed anything if it doesnt come with Annual Fees.......Let your account aged for about 1 years or 2 then apply for something you really need. Do your homework before you apps for anything......

Hope it help. Feel free to contact everyone here if you have any questions ..........Fico folks very nice and helpful........and we don't  charge fees lol...


Starting Score: 560
Current Score: 748 Wishlist: CSP, Simply Cash, SPG, BOLD, INK, United MP,
Goal Score: 800


Walmart: 10k |Usaa: 8k|BCE: 9k| Amex: NSPL|Dis: 3.4k|Cap: 3.5k|CAP: 2k|CSP: 5k| Pen:4.5k

Contributor
Sitori
Posts: 268
Registered: ‎10-25-2012

Re: Newbie Question......

wait what?????  I'm confused now.

My payment date is 12/5....so I shouldn't pay the balance in full??? I should pay some and leave some to carry over? I thought i was supposed to PIF every month?

 

 

My FP card DOES have an annual fee soooo I guess I should close it. I think it has other fee's too lol

 

 

Oh BTW...I just got my congrats letter from Discover and on the back was my TU FICO and it's now 700!!! WOOOHOOOOOO


-------------------------------------------------------------------------------------------------
EQ 701, TU 685, EX ?
Wallet:
Amazon store $2500(10/12), Cap1 $1500 (10/12), Discover $1700 (11/1/12).
Community Leader
Valued Contributor
DaveSignal
Posts: 1,735
Registered: ‎07-29-2011

Re: Newbie Question......

[ Edited ]

you'll do fine paying in full before the due date, as long as you don't use more than $120 credit.   Even if you use more, you are still fine longterm, but if you want the highest possible scores immediately, then you should pay your balance to above 0 but less than $120 (below 10% of the credit limit) before the statement posts.   It is easier to push the payments online from your bank instead of using the credit card online payment, because then there are no limitations to when or how much you can pay.

 

EDIT:  just noticed now that you have other cards too.   Here is what I do.  I have a lot of cards, but only two that I use regularly and let report a balance.  All of my other cards I PIF before the statement date and let report $0 balance.  I don't pay any of my cards more than once a month, but I try not to spend so much on my two regular cards that they report a balance that is near the credit limit.


  FICO Scores: EQ:712 TU:767 EX:706
Barclays Arrival World MasterCard $6.5k - BoA Travel Rewards Visa Signature $15k - SDFCU EMV $15k - NFCU goRewards $20k
Established Contributor
distantarray
Posts: 2,112
Registered: ‎09-25-2011

Re: Newbie Question......

you can pay at anytime, you can pay 30 times a month if you really want.

 

remember not all credit card reports your spending when the statement cuts, many companies send reports out mid month. So if your statement is made for Jan 1st, some cards will report at Dec 20.

 

Just keep your  balances low, and keep actively using credit pay as much as you want, and find your sweet spot. most people have a sweet spot around 2% debt owed. Fico takes points off if multiple cards show a balance however. It doesn't matter when or how you pay. Just pay the minimum or more before the due date, and keep your balances under 5% is considered ideal, but even if it stays at 0% it won't hurt you. on a manual review however it might make it appear your not using credit cards at all. So reporting a little is worth it sometimes. But personally I'm a cheapsake =) I pay in full 100% and still built my credit upto 758 in 1 year with a very thin file.


total credit limits $108,400 Credit scores Ex 728 EQ 738 TU 758
Contributor
Sitori
Posts: 268
Registered: ‎10-25-2012

Re: Newbie Question......

Ok. Got it.

 

So my statment date is the 12th  and my due date is the 5th..it will stay that way? Or does the statement date change?

 

I should close the FP right? There's an AF on it I believe and only a 300$ CL


-------------------------------------------------------------------------------------------------
EQ 701, TU 685, EX ?
Wallet:
Amazon store $2500(10/12), Cap1 $1500 (10/12), Discover $1700 (11/1/12).
Established Contributor
jamie123
Posts: 657
Registered: ‎03-22-2012

Re: Newbie Question......

Okay...I'm going to try and explain this as clearly as I can. It is very important that you understand this and if you don't understand something please ask me to clarify it further.

 

The way you use and pay your CCs has a HUGE impact on your scores. You need to use each credit card EVERY month and control the balance that reports to the CRAs each month. This is especially important to someone as yourself that has a very short period of time to work with before an anticipated new credit application in February.

 

1. Use each credit card every month as much as you can. You want to try and transfer as much of your daily living expenses onto your credit cards as possible. YOU DO NOT WANT TO BUY ANYTHING THAT YOU DON'T HAVE THE MONEY TO PAY FOR ALREADY SITTING IN THE BANK! Think of your credit cards as debit cards with a slight delay built in. Use them for gas, groceries, cell phone bills, McDonald's, etc. Doing this shows the lender that you are using their card and will pave the way for CLIs in the future. It helps you to establish credit history and demonstrates good credit behavior.

 

2. Utilization (UTI) accounts for 30% of your score. You have direct control of 30% of your credit score! You need to pay your balances TWICE each month to be able to control your reporting balance. What is the reporting balance you ask? The CC companies report your account balance once each month to the CRAs. The reporting date varies from your payment due date, up to your payment due date + 3 to 4 days, so you need to control the balance on your card for this approx. 1 week period each month.

 

An example: Say your payment due date is the 20th of November. You want to go online a few days early, say the 17th of November and ALMOST pay your balance down to zero. Leave a balance of $10 to $30 on the card so your reporting balance will be $10 to $30. You now cannot use this card for new purchases until 5 days AFTER the payment due date. Just switch to using another card that has a different payment due date for this 1 week time period. Sometime after your new stement cuts for this account stop back and pay the $10 to $30 dollars off to take the balance to zero and start using the card again. You need to do this with each card every month, and it is a PITA, but your scores will benefit because of it.

 

If you are planning on applying for NEW credit, you want only ONE card reporting a balance and the other cards reporting zero before applying for the NEW credit.

 

Any questions?



Starting Score: EQ 658 6/18/12
Current Score: EQ 680 9/23/13
Goal Score: EQ 720+
Take the FICO Fitness Challenge
Established Contributor
distantarray
Posts: 2,112
Registered: ‎09-25-2011

Re: Newbie Question......

[ Edited ]

it honestly doesn't matter to use your credit card if you use it 100 times a month or 1 time a month or let alone once every six months to keep it in open status. Your scores will rise regardless....

 

You should every expense you can on a credit card not for a better credit score cause it won't make a difference how much you spend, the main thing is if you are a responsible consumer or not. If I charge a order of fries every month on a credit card it won't make a difference to my score vs someone who made over 10,000 transactions in one month for your fico score. although this could possibly help with your internal scoring with companies like Chase and Amex, but for Fico it does not.

 

You should use every expense you can cause it's a clean documentation and proof in case you lose a receipt, and things are more disputable. also with things with good credit cards like 90 day price match protection, reward points/cash back , travel insurance, car rental insurance etc.

 

Your Fico score only cares if you pay on time, and carry a low balance. Although in a manual review if they see the highest limit ever charged was $1 on a $10000 limit they might wonder what the heo? lol    

 

If your statement is sent out on the 17th just pay your balance before it cuts at 15th to lower your chances you'll get a high balance reported. Remember somecompanies  will post your spending anytime they wish.

 

personally I pay mine within few hours to 4 days of a big purchase. Just make sure you don't spend more than you can afford to pay off and your fine. even if you wreck your Fico by charging up 100% of your limits one month it won't matter in the following month if you pay itdown. just make sure to lower your balance a month or two before a big purchase like a car loan or a mortgage and you'll be fine. (or before apping for another credit card)

 

If my credit is at 100% limit for a year with minimum payments and pay it down as long as companies don't lower my limits or close my cards as high risk your fico score won't be any different then someone who pays 100% of their spending 1 minute after the transaction.

 

 I got my scores upto what it is now from doing what I do,with only maybe 2 charges a day on average if that. I pay it off so I don't have to pay any interest fees within their grace period and I'm set to go. Although my Fico's about to do a nose dive from charging $15,000 on a convience check to buy a house that's "cash offer only" lol but I'm not worried cause that's my low interest oh sh it card to balance transfer at 5-6% interest rate it's stil lower than most people's 2005-2007 mortgages.


jamie123 wrote:

Okay...I'm going to try and explain this as clearly as I can. It is very important that you understand this and if you don't understand something please ask me to clarify it further.

 

The way you use and pay your CCs has a HUGE impact on your scores. You need to use each credit card EVERY month and control the balance that reports to the CRAs each month. This is especially important to someone as yourself that has a very short period of time to work with before an anticipated new credit application in February.

 

1. Use each credit card every month as much as you can. You want to try and transfer as much of your daily living expenses onto your credit cards as possible. YOU DO NOT WANT TO BUY ANYTHING THAT YOU DON'T HAVE THE MONEY TO PAY FOR ALREADY SITTING IN THE BANK! Think of your credit cards as debit cards with a slight delay built in. Use them for gas, groceries, cell phone bills, McDonald's, etc. Doing this shows the lender that you are using their card and will pave the way for CLIs in the future. It helps you to establish credit history and demonstrates good credit behavior.

 

2. Utilization (UTI) accounts for 30% of your score. You have direct control of 30% of your credit score! You need to pay your balances TWICE each month to be able to control your reporting balance. What is the reporting balance you ask? The CC companies report your account balance once each month to the CRAs. The reporting date varies from your payment due date, up to your payment due date + 3 to 4 days, so you need to control the balance on your card for this approx. 1 week period each month.

 

An example: Say your payment due date is the 20th of November. You want to go online a few days early, say the 17th of November and ALMOST pay your balance down to zero. Leave a balance of $10 to $30 on the card so your reporting balance will be $10 to $30. You now cannot use this card for new purchases until 5 days AFTER the payment due date. Just switch to using another card that has a different payment due date for this 1 week time period. Sometime after your new stement cuts for this account stop back and pay the $10 to $30 dollars off to take the balance to zero and start using the card again. You need to do this with each card every month, and it is a PITA, but your scores will benefit because of it.

 

If you are planning on applying for NEW credit, you want only ONE card reporting a balance and the other cards reporting zero before applying for the NEW credit.

 

Any questions?


 


total credit limits $108,400 Credit scores Ex 728 EQ 738 TU 758
Established Contributor
jamie123
Posts: 657
Registered: ‎03-22-2012

Re: Newbie Question......


distantarray wrote:

it honestly doesn't matter to use your credit card if you use it 100 times a month or 1 time a month or let alone once every six months to keep it in open status. Your scores will rise regardless....

 

You should every expense you can on a credit card not for a better credit score cause it won't make a difference how much you spend, the main thing is if you are a responsible consumer or not. If I charge a order of fries every month on a credit card it won't make a difference to my score vs someone who made over 10,000 transactions in one month for your fico score. although this could possibly help with your internal scoring with companies like Chase and Amex, but for Fico it does not.

 

You should use every expense you can cause it's a clean documentation and proof in case you lose a receipt, and things are more disputable. also with things with good credit cards like 90 day price match protection, reward points/cash back , travel insurance, car rental insurance etc.

 

Your Fico score only cares if you pay on time, and carry a low balance. Although in a manual review if they see the highest limit ever charged was $1 on a $10000 limit they might wonder what the heo? lol    

 

If your statement is sent out on the 17th just pay your balance before it cuts at 15th to lower your chances you'll get a high balance reported. Remember somecompanies  will post your spending anytime they wish.

 

personally I pay mine within few hours to 4 days of a big purchase. Just make sure you don't spend more than you can afford to pay off and your fine. even if you wreck your Fico by charging up 100% of your limits one month it won't matter in the following month if you pay itdown. just make sure to lower your balance a month or two before a big purchase like a car loan or a mortgage and you'll be fine. (or before apping for another credit card)

 

If my credit is at 100% limit for a year with minimum payments and pay it down as long as companies don't lower my limits or close my cards as high risk your fico score won't be any different then someone who pays 100% of their spending 1 minute after the transaction.

 

 I got my scores upto what it is now from doing what I do,with only maybe 2 charges a day on average if that. I pay it off so I don't have to pay any interest fees within their grace period and I'm set to go. Although my Fico's about to do a nose dive from charging $15,000 on a convience check to buy a house that's "cash offer only" lol but I'm not worried cause that's my low interest oh sh it card to balance transfer at 5-6% interest rate it's stil lower than most people's 2005-2007 mortgages.



I beg to differ with your statement on utilization. If you max out your credit cards by having an over 90% utilization report, your scores will drop a lot! Like I mean perhaps 75 to 100 points!



Starting Score: EQ 658 6/18/12
Current Score: EQ 680 9/23/13
Goal Score: EQ 720+
Take the FICO Fitness Challenge
Frequent Contributor
bluesnowman
Posts: 462
Registered: ‎10-29-2012

Re: Newbie Question......

[ Edited ]

I just recently started my credit hisotry a few months ago and here is what I want to say. For the first six months of your credit history, ot down your statement date, because this is when typically your creditor will send your infomation (balances reported and the like) to the 3 bureaus. What I did was pay before the statement date closes 2-3 days prior so it would show as a 0 balance. The only time I would think to leave a small balance is to show the Fico model you can hold a small balance and then pay it off quickly, then start using the card again. Typically under 10% utilization is best, because at least then you aren't showing that you're practically living on credit. Secondly, limit inquires. Don't go for cards that you know you will be denied for unless you have the history/income/time circumstances to do so. For example, If you have a total of 4 cards, but 1 year of history, don't apply for a CSP or a U.S. Bank Cash+ card, because from what I have seen, it is unlikely unless you are connected or have an amazing income that you will be approved for those types of cards early on. I've learned quite a bit being on this forum in the last week or two, and personally what I have done. Make a plan with what you're going to do with each card, and don't spend more then you need to because it will be bad if you don't pay up to your creditor. Like my Dad always tells me, "Be good to your creditors, and they will be good to you". Just be careful, and remember credit is a privlidge and not a right, so use it wisely and everything should be okay. Good luck. 

Bank of America: Cash Rewards.-1,000. 4/25/12 (CLI Increase 6/15/13), Citi: Forward- 3k. 10/27/12 (CLI on 2/8/14, SP). Discover: More- 1.5k. 10/27/12. Amex: PRG- NPSL (closed 12/13/13). 11/24/12. Chase: Freedom. 5/1/13- 2.4k. Southwest Rapid Rewards Plus.-3.6k. 6/15/13. Amex BCE-2k. 12/7/13. Amex SPG-4k.12/8/13. Last App: 1/8/14.

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