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03-19-2010 12:57 PM
Are the dates when a statement cuts/reports the same for everyone that has that particular card or does it vary person-by-person depending on when they were approved, processed etc?
I just got approved for two cards (USAA secured and a Best Buy Rewards unsecured) and I want to practice proper utilization on them.
03-19-2010 05:57 PM
Thanks wolf. So I guess the safe bet is to call and ask them when my statement gets created once I get the cards so i know how to proceed.
So for example if the statement cuts on the 25th of each month and they usually report during the following days, I should make sure to PIF and leave a 7% balance of my combined CLs by the 23rd to be safe. Then pay the remainder when I get the bill, then rinse and repeat the next month. Ham I doing this rite?
03-19-2010 08:41 PM
Some (like HSBC) report at end of the month regardless of the statement date, so you need to find that out.
This strategy will keep the utilization low. I don't know if there is a right.
I am rebuilding with 2 secured cards. One has 0% APR for 6 months. I am keeping that at 95% utilization constantly until the interest changes, then I will PIF. The other card, I run to close to max and pay in full by due date. I do pay minimum payment online after statement cuts (for safety) and the PIF a couple days before due date. I think you need to show you can handle credit to build it. I am now getting offers to apply for rewards card. I will pay everything to low utilization in the month before I plan to apply for anything, but I don't see the need to do it every month.
I know I am in the minority with this opinion, but that is how I am doing it.
03-20-2010 12:48 AM
Well, I was planning on sock drawering the HSBC card because its a lower limit, do the 7% util for a month or two on the USAA card, then open up a CU secured card for 1,500-2,000 and a savings account that I will use as my main savings account so I can establish a relationship with them for future car/home loans if possible. As well as open other cards along my journey. I burned almost all prime banks when I was young (bofa, discover, citi), so I don't have many options left.