Reducing balances to 1% of TCL before each statement closes - am I doing it correctly?

[Anonymous]

Hello, I've been browsing here for awhile and finally decided to join the site.

Just wondering if I'm doing this correctly:

1. Use card as normal up until a day or so before statement closes

2. Make a payment such that the remaining balance will be 1% of TCL before statement closes (example: if $1k balance out of $10k limit, I'd pay $900 to make it 1% of TCL)

3. Issuer will report statement balance to CRAs, thus showing 1% utilization (unless it's U.S Bank which reports balances on the 1st I've read)

3. Statement closes, I pay off the SB entirely and resume use as usual.

Should I be doing this for all six credit cards I have, or should I only be doing this for one or two cards and leave a $0 balance (PIF before statement closes) reporting on the rest?

Thanks

[Anonymous]

Pay all to 0 except the one if you want optimal scoring. If not then don't sweat

[SouthJamaica]

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@Anonymous wrote:

Hello, I've been browsing here for awhile and finally decided to join the site.

Just wondering if I'm doing this correctly:

1. Use card as normal up until a day or so before statement closes

2. Make a payment such that the remaining balance will be 1% of TCL before statement closes (example: if $1k balance out of $10k limit, I'd pay $900 to make it 1% of TCL)

3. Issuer will report statement balance to CRAs, thus showing 1% utilization (unless it's U.S Bank which reports balances on the 1st I've read)

3. Statement closes, I pay off the SB entirely and resume use as usual.

Should I be doing this for all six credit cards I have, or should I only be doing this for one or two cards and leave a $0 balance (PIF before statement closes) reporting on the rest?

Thanks

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If you want to optimize your FICO scores at any given moment, the safest bet is to let all but one of your accounts report a zero balance, with one account reporting a balance of 9% or less.

(Your post didn't mention anything about due dates. I hope you're making your minimum payments prior to the due dates, which may be as many as 6 days before the statement dates).

[amakol]

I agree in saying this is only necessary if you're applying for a new tradeline. It seems too much of a hassle to do monthly for little or no benefit.

[gh17]

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SouthJamaica wrote

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(Your post didn't mention anything about due dates. I hope you're making your minimum payments prior to the due dates, which may be as many as 6 days before the statement dates).

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I assume OP meant he pays the entire balance off shortly after the statement closes (which would be far before the due date).

[Anonymous]

Statements close after due date... At least all mine do.

[Anonymous]

Just checked. My statements cut between 3-5 days after my due dates.

[Imperfectfuture]

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@Anonymous wrote:

Hello, I've been browsing here for awhile and finally decided to join the site.

Just wondering if I'm doing this correctly:

1. Use card as normal up until a day or so before statement closes

2. Make a payment such that the remaining balance will be 1% of TCL before statement closes (example: if $1k balance out of $10k limit, I'd pay $900 to make it 1% of TCL)

3. Issuer will report statement balance to CRAs, thus showing 1% utilization (unless it's U.S Bank which reports balances on the 1st I've read)

3. Statement closes, I pay off the SB entirely and resume use as usual.

Should I be doing this for all six credit cards I have, or should I only be doing this for one or two cards and leave a $0 balance (PIF before statement closes) reporting on the rest?

Thanks

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For some strange reason, Fico 8 gives more bonus points at 4% than 1% utilization.  And that is overall.  So, I could go over 30% on one card, a litltle under 10% on another card, let small balance report on third card, and I am still at 4% util.

[Anonymous]

Hello all, thank you for your responses.

The payment due date is for the prior statement balance, and is not a concern.

My new concern is how to handle different closing dates on the cards if the plan is to have only one card reporting a balance to the CRAs.

Closing dates for my cards:

1. Wells Fargo: between 12th-15th (first card, balance recently zeroed and no plans on using this card anymore due to low rewards, except maybe once every few months to keep card active).

2. Chase FU: unknown at the moment, however the payment due date is always the 12th of every month (not sure if changing the due date will affect the statement close date. According to site, I must wait 180 days before changing the date due since it is a new account).

3. Cit DC: next statement will close on May 19th, I have charges on it and plan on making a payment such that it closes with either $0 or 1% of the card's limit.

4. Discover iT: last statement closed on May 5th (used card and paid to make statement close at $15 (1% of my SL). The payment due date is June 3rd, which is for the "leftover" amount from May 5th's statement, which I will PIF plus more since I plan on making more charges to this card before the due date.

5. Amex BCE: next closing date is May 13th. Have not made charges to the card yet -- waiting for cell phone bill to generate (using this card for the 10% off cell phone bill promotion up to $2000 until end of year for a maximum $200 statement credit).

6. Total Rewards Visa (Comenity): Waiting to receive card in mail.

[gh17]

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@Anonymous wrote:
Just checked. My statements cut between 3-5 days after my due dates.

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I think you're misunderstanding.

Your statement closes the 19th.  Your bill comes.  Your due date is maybe the 15th.  Before your NEXT statement date- but after the statement date you're paying for.  Your statement is where it tells you when to pay and what to pay.  Your due date isn't before you get the bill.

I'm assuming his statement closes say the 19th then he pays in full sometime over the next few weeks before the due date.