09-03-2009 08:00 AM
09-03-2009 08:30 AM
Most credit card companies report your balance as of your statement date to the CRAs. This means that even if you are someone who always pays in full prior to the due date you have balances reported. THe benefit of paying some or all of you balance prior to the statement date is to control teh balances reported to the CRA. Basically we are controlling or % utilization and the number of credit cards that report a balance.
Ideally you would like less than 9% utilization (both overall and on any specific card); and less than 1/2 of your credit cards reporting a balance. You do want at least one card reporting a balance--you will get a score ding if none of your credits cards have any balance. These tweaks to your score are really only important if you are looking to apply for a major purchase soon or if you are concerned with AA.
Hope this helps.
09-03-2009 02:35 PM
09-03-2009 06:28 PM
Hi- could anyone tell me what is the benefit of paying the minimum amount due on a cc balance and then the next say or so pay the rest before the statement closing date?
Hi...I just wanted to point out that by paying only the minimum amount due by the due date you will incur a finance charge. This is because you wouldn't be paying the full amount due by the due date. If you are going to pay off the full amount by the statement closing date anyway, then I would recommend paying the entire amount due on the statement by the due date, and then paying the remainder of the balance by the statement closing date.
I am afraid I may not be explaining this clearly. I'm just saying if you are going to pay it all off anyway, don't incur a finance charge by just paying the minimum payment by the due date.
09-03-2009 07:26 PM
The way they trick you, is they mostly report the balance that is on the card once the bill cycles.
That date varries, give or take, depending on how many days in the month, and whether it falls on a weekend or not.
09-04-2009 09:52 AM
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.