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I_SUFFER_FROM_FICO_ENVY
Posts: 74
Registered: ‎04-03-2012
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QUESTION, I want to keep my UTI approximately 9% and......

I hear, from this site, to make sure that when the CC reports the balance, have your one credit card (with the highest available credit limit) have a balance of 9%.

 

So, how do I find out THE DAY that the CC reports the balance?  I have 4 revolving CC's and I would like to "test" and see what happens.  I'd like to keep 3 of the 4 CC's with ZERO balance and place a 9% balance on the other card.

 

But, how do I determine when this CC reports that balance?

 

Thanks in advance

 

 

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Revelate
Posts: 9,652
Registered: ‎12-30-2011
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Re: QUESTION, I want to keep my UTI approximately 9% and......

[ Edited ]

It's usually the balance as of your statement date, reported a few days after your statement close date, which can be determined either in an online interface or on the date given on the paper if you still receive non-electronic statements.

 

The only sticky point is it's not always statement close balance, sometimes it's the balance on the day the lender reports... further complicated by the fact that pending transactions may or may not get credited to your account in the meantime.  So that's really where the advice comes in, zero out your other accounts well in advance, and then stay under that 10% or pre-pay it, or whatever required on your largest CL to make things easy.

 

That's probably the one reason I'll keep my BOFA checking account / card open long-term: it's so easy to manage for my non-zero balance compared to some other lenders I've read about here.

 

Edit: if you're really curious, keep track of your daily balance on your >$0 card, and use one of the free services like Credit Karma that allows you to see your report data easily, and match the amount up with your daily balance tracked otherwise.  For your given lender, that'll basically demonstrate exactly what their policies are to make things as precise as possible going forward.  Kinda gravy though for most folks, especially once you get things like charge cards which utilization isn't counted on for any modern FICO algorithm and just use that for your week-long float where you're tweaking balances.

 

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DaveSignal
Posts: 2,111
Registered: ‎07-29-2011
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Re: QUESTION, I want to keep my UTI approximately 9% and......

Usually it is the statement date.  Very occasionally, there are cards, such as Militar STAR, which reports at the beginning of the month, or other cards which do something else strange.  But the majority of lenders will report to the credit bureaus on the statement date.

 

And it doesn't matter which card you choose to report a balance.  Just that the one with a high credit limit is the easiest one to let report and be a small util % without thinking about it too much.

EX:694 TU:744 EQ:777
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New Contributor
I_SUFFER_FROM_FICO_ENVY
Posts: 74
Registered: ‎04-03-2012
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Re: QUESTION, I want to keep my UTI approximately 9% and......

So, if I have read this correctly, the credit card I have with the highest credit limit is $5000.  9% of that is $450.00  My Statement date is always the 14th.  Therefore, for me to MAXIMIZE my FICO score.....

 

...I need to keep that balance ($450.00) on my account at my statement date which would mean I'd have to pay (gasp) interest on that $450.00, right?  Is there anyway around paying that interest?

 

Seems like a crappy way to MAXIMIZE increasing a FICO score.  Or, am I missing something?

 

Thanks

 

 

Frequent Contributor
journey258
Posts: 265
Registered: ‎05-28-2012
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Re: QUESTION, I want to keep my UTI approximately 9% and......

I actually called all of my CC issuers and asked the date that they report to the bureaus. Most were able to give me the date that they report, some gave me a date range of 2-3 days. 


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BlueNightStar
Posts: 181
Registered: ‎07-09-2011
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Re: QUESTION, I want to keep my UTI approximately 9% and......


I_SUFFER_FROM_FICO_ENVY wrote:

So, if I have read this correctly, the credit card I have with the highest credit limit is $5000.  9% of that is $450.00  My Statement date is always the 14th.  Therefore, for me to MAXIMIZE my FICO score.....

 

...I need to keep that balance ($450.00) on my account at my statement date which would mean I'd have to pay (gasp) interest on that $450.00, right?  Is there anyway around paying that interest?

 

Seems like a crappy way to MAXIMIZE increasing a FICO score.  Or, am I missing something?

 

Thanks

 

 


You don't pay any interest as long as you pay that 9% balance before the due date. I usually pay any balance several days after the statement closes.

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Cdnewmanpac
Posts: 766
Registered: ‎01-16-2012
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Re: QUESTION, I want to keep my UTI approximately 9% and......


I_SUFFER_FROM_FICO_ENVY wrote:

So, if I have read this correctly, the credit card I have with the highest credit limit is $5000.  9% of that is $450.00  My Statement date is always the 14th.  Therefore, for me to MAXIMIZE my FICO score.....

 

...I need to keep that balance ($450.00) on my account at my statement date which would mean I'd have to pay (gasp) interest on that $450.00, right?  Is there anyway around paying that interest?

 

Seems like a crappy way to MAXIMIZE increasing a FICO score.  Or, am I missing something?

 

Thanks

 

 


Not exactly. You pay interest on anything you do not pay in full by the due date, not the statement date. So, if you charge 450 today, on the 14th of august (per your post, or perhaps a few days later), you will get a statement indicating that you have a balance of 450, a minimum payment of x and a due date of (likely) 9/14. As long as you pay the balance IN FULL by 9/14, there is no interest due. So you want to pay off all your other charges on other cards BEFORE the statement is issued, so it issues a zero balance. What is on your statement (in most cases) is what is reported to the CRAs. 

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DaveSignal
Posts: 2,111
Registered: ‎07-29-2011
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Re: QUESTION, I want to keep my UTI approximately 9% and......


I_SUFFER_FROM_FICO_ENVY wrote:

So, if I have read this correctly, the credit card I have with the highest credit limit is $5000.  9% of that is $450.00  My Statement date is always the 14th.  Therefore, for me to MAXIMIZE my FICO score.....

 

...I need to keep that balance ($450.00) on my account at my statement date which would mean I'd have to pay (gasp) interest on that $450.00, right?  Is there anyway around paying that interest?

 

Seems like a crappy way to MAXIMIZE increasing a FICO score.  Or, am I missing something?

 

Thanks

 

 


wrong.  I NEVER pay interest.  You get charged interest if you don't pay your full statement balance by the due date.  Don't do that.

 

Just use the card continuously.  Pay the full balance by the due date and then continue to use the card, but less than $450 before the statement hits.  You don't get charged interest.  You might want to read your disclosures that came with your credit card as they explain how interest is charged.

EX:694 TU:744 EQ:777
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Senior Contributor
Walt_K
Posts: 3,065
Registered: ‎11-02-2009
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Re: QUESTION, I want to keep my UTI approximately 9% and......

+1 to everyone re paying the balance in full and avoiding interest.

 

Also, 9% isn't magical.  Everyone has a different sweetspot, but lower is often better.  You can just as easily let $5 post.  You might have to play around with it if you're intersted in teasing out every last possible point.   


Starting Score: ~500 (12/01/2008)
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MarineVietVet
Posts: 14,577
Registered: ‎07-14-2009
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Re: QUESTION, I want to keep my UTI approximately 9% and......


Walt_K wrote:

+1 to everyone re paying the balance in full and avoiding interest.

 

Also, 9% isn't magical.  Everyone has a different sweetspot, but lower is often better.  You can just as easily let $5 post.  You might have to play around with it if you're intersted in teasing out every last possible point.   


I agree completely. Even $1 is enough.


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