Agree with what Mustanglvr is saying as the general advice for how to maximize scoring. But I think OPs question is a little different. A Jared card is a store card that can only be used at Jared correct? So you're not going to be using it monthly unless you've got a real jewelry fix.
As for paying it off completely now versus paying it off in two months, once it's paid off, there's no difference. Your score is a snapshot of your report. You'll get the most points from following Mustanglvr's advice, but once you pay the card off, the following month your score is going to go to the same place it would have gone if you had paid the card in full this month. Does that make sense? So you're really just talking about the difference in a few points for one month.
Now, in general, you're going to get the best results from following Mustanglvr's advice. But typically that is going to invlolve putting purchases on a general purpose CC so that a small (less than 9%) balance can report that month. As already stated, you want a balance on only one card. This is for reporting purposes. The balance that reports is the one on your statement (for most cards). So you pay your balance down before the statement is generated. Then, after your statement comes, you pay the remaining balance in full. That way you don't pay any interest.
[edited typo]
Starting Score: ~500 (12/01/2008)
@butterflyblu wrote:Mustanglvr2006- Thank you so much for the enlightning information. That helps me a lot.
The only CC I have are the Jared, Kays and JB Robinsons. I bought furniture a few months back and pay Great American Finance Co monthly for that and I have a car payment.
So, then probably best for me to pay the $175?
Do you use any of the Jared, Kays, or JB Robinsons cards regularly? They are all store cards right? You're only talking about a one month score difference. It's probably immaterial whether you pay the $175 or $200. Unless you are trying to position yourself for another application next month in which case the couple points difference might be important.
@butterflyblu wrote:
Yes, these are all store cards. I have only used the Jared card at this point. I love jewelry but not enough to put myself in debt over it. ha ha.
I basically got them to help rebuild, and its been working. I will be using them for small purchases for a birthday coming up and probably during the holidays but not anything really expensive.
Thanks so much for the input!
In that case, I wouldn't worry about playing the utilization game. Just pay them off. Just to make sure we're on the same page, your FICO score is a snapshot of your report. It takes a report and gives points for certain information on the report at that time.
What some people imagine is a stash of points. They believe that "good" behavior adds to that stash and "bad" behavior subtracts from it. This is true in a sense, but the score is not independent of the report. You don't have a points bucket sitting somewhere that is added to and subtracted from. You get a score based on a report. If you pay your debt all the way off now or in two months, your report is going to be identical once the debt is paid off (all else being equal and except for the one month that every account just aged). So between those two scenarios, once the debt is paid all the way down, your score will be the same. There's no added benefit to taking another month to pay it down.
And one final thing, remember that even if you pay the balance in full this month, there will likely be residual interest the following month. Make sure you check your statement so you don't end up forgetting about a $5 finance charge and then end up with a 30 day late payment.