Okay to Charge Right Before Statement Cuts?

tpatterson2k9 · ‎07-20-2011

I have been practicing the policy of keeping 1-9% util on 1 CC and $0 balance on all other CCs, but I also read that no charges should be made on the utilized card a few days before the statement cuts. Is it okay to keep charging all the way up to right before and right after the statement cuts as long as those new charges keep me in the 1-9% util range? Does charging right before the statement cuts mess up how the CC balance gets reported to the CRAs?

Starting Scores (lender pull 3/27/10): 759 (EQ), 752 (TU), 749 (EX)
Current Scores (myFICO 4/4/11): 768 (EQ)
Goal Scores: 800

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Jazzzy · ‎07-20-2011

Those charges will appear on your statement and will be reported on your credit reports. If you don't have a problem with those amounts showing, then there's no problem. They will count in your utilization.

p- · ‎07-20-2011

@tpatterson2k9 wrote:
I have been practicing the policy of keeping 1-9% util on 1 CC and $0 balance on all other CCs, but I also read that no charges should be made on the utilized card a few days before the statement cuts. Is it okay to keep charging all the way up to right before and right after the statement cuts as long as those new charges keep me in the 1-9% util range? Does charging right before the statement cuts mess up how the CC balance gets reported to the CRAs?

You really don't need to worry about it as long as you stay at the correct utilization. And even if you muiss the statement cutoff and lower your score, who cares? Unless you plan to apply for credit those variations don't matter. If you are planning to apply for credit, then it's time to be very meticulous about your utilization.

visorboy1974 · ‎07-20-2011

@tpatterson2k9 wrote:
I have been practicing the policy of keeping 1-9% util on 1 CC and $0 balance on all other CCs, but I also read that no charges should be made on the utilized card a few days before the statement cuts. Is it okay to keep charging all the way up to right before and right after the statement cuts as long as those new charges keep me in the 1-9% util range? Does charging right before the statement cuts mess up how the CC balance gets reported to the CRAs?

The charge itself won't mess anything but your available credit up. However, if the transaction actually posts to your account, then it'll impact your utilization.

FICO Scores Updated 07/15 EQ08 748 EX08 748 TU08 818

tntexans72 · ‎07-20-2011

Your score will be volatile month to month, imho, if you are not going to make any major purchases or app for any new credit...I wouldn't be concern with a little util increase here or there. The only time I would worry about it if I was preparing myself for a new app, car loan, or a mortgage - refinance etc....outside of that, I just go with the flow and try to keep my util below 35% at all times.

Now if you like to pull your score each month and keep track of it to a T, than I can understand why you are concerned with the little details.

john398 · ‎07-20-2011

@p- wrote:
@tpatterson2k9 wrote:
I have been practicing the policy of keeping 1-9% util on 1 CC and $0 balance on all other CCs, but I also read that no charges should be made on the utilized card a few days before the statement cuts. Is it okay to keep charging all the way up to right before and right after the statement cuts as long as those new charges keep me in the 1-9% util range? Does charging right before the statement cuts mess up how the CC balance gets reported to the CRAs?
You really don't need to worry about it as long as you stay at the correct utilization. And even if you muiss the statement cutoff and lower your score, who cares? Unless you plan to apply for credit those variations don't matter. If you are planning to apply for credit, then it's time to be very meticulous about your utilization.

What about your current companies that soft you? sometimes they will see high util which will cause Adverse Action, I have heard of that before

But I for one will be using my credit card more because no more rewards with my debit cards, but I am going to try to PIF by statement dates

tntexans72 · ‎07-20-2011

@john398 wrote:
@p- wrote:
@tpatterson2k9 wrote:
I have been practicing the policy of keeping 1-9% util on 1 CC and $0 balance on all other CCs, but I also read that no charges should be made on the utilized card a few days before the statement cuts. Is it okay to keep charging all the way up to right before and right after the statement cuts as long as those new charges keep me in the 1-9% util range? Does charging right before the statement cuts mess up how the CC balance gets reported to the CRAs?
You really don't need to worry about it as long as you stay at the correct utilization. And even if you muiss the statement cutoff and lower your score, who cares? Unless you plan to apply for credit those variations don't matter. If you are planning to apply for credit, then it's time to be very meticulous about your utilization.

What about your current companies that soft you? sometimes they will see high util which will cause Adverse Action, I have heard of that before

But I for one will be using my credit card more because no more rewards with my debit cards, but I am going to try to PIF by statement dates

+1......and no worries!

Uborrow-Upay · ‎07-20-2011

@tpatterson2k9 wrote:
I have been practicing the policy of keeping 1-9% util on 1 CC and $0 balance on all other CCs, but I also read that no charges should be made on the utilized card a few days before the statement cuts. Is it okay to keep charging all the way up to right before and right after the statement cuts as long as those new charges keep me in the 1-9% util range? Does charging right before the statement cuts mess up how the CC balance gets reported to the CRAs?

Looking at your scores, you're pretty much golden. Anything over 760 is just window dressing. You'll get the best rates. And if you're not looking for any type of a loan, don't worry about this at all.

Don't sweat the small stuff!

joestay · ‎07-20-2011

I recently brought airline tickets right before my cutoff date. I brought the tickets on 7/10/11 and my cutoff date is 7/11/11. It brought my utlization to 50% but the thing this, it didn't post to my account yet before the cutoff date. It was showing in the pending section on 7/11/11. Then, I decided to see if I could pay it down on 7/11/11 and it actually went through. They accepted the payment even though my posted balance was like $20 and my pending transaction was $4000. Then, after the statement cut and a statement was available, it shows I only have 12.5% utilization. I was suprise it actually went through and helped with my utilization. I needed it to be low because I am planning to look for a house soon (this month or next month) and I needed the credit score for the best rate (i'm currently a tad over 760).