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Senior Contributor
Booner72
Posts: 3,889
Registered: ‎05-24-2011

Re: Statement Date

@ Hauling - You do such a great job of taking the time to explain things so clearly and nicely.  I really appreciated all of that when you helped me get started.  I just wanted to give you kudos for this!

 

@OP -  I was wigged out to the hilt trying to get all my accounts to report zero, except one to report 1-9%.  I have a hugely long thread about in "understanding your score" if you care to take a gander.  What ended up happening is my score got where it needed to be because I got my overall utility way down.  I didn't have to fine tooth/tweek this method of 1-9%.  I think I have such a "dirty" credit file that I'm about maxed out at where I will be until the bad stuff is gone, which will be a LOOONG time.

 

Good Luck!  What is it you're trying to do again?  Mortgage?

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Valued Contributor
ptr2593
Posts: 1,486
Registered: ‎08-14-2011

Re: Statement Date


Booner72 wrote:

@ Hauling - You do such a great job of taking the time to explain things so clearly and nicely.  I really appreciated all of that when you helped me get started.  I just wanted to give you kudos for this!

 

@OP -  I was wigged out to the hilt trying to get all my accounts to report zero, except one to report 1-9%.  I have a hugely long thread about in "understanding your score" if you care to take a gander.  What ended up happening is my score got where it needed to be because I got my overall utility way down.  I didn't have to fine tooth/tweek this method of 1-9%.  I think I have such a "dirty" credit file that I'm about maxed out at where I will be until the bad stuff is gone, which will be a LOOONG time.

 

Good Luck!  What is it you're trying to do again?  Mortgage?



Could you link me to that thread?  I'd like to read it :smileyhappy:

 

And no, not applying for a mortgage or anything serious.  I'm 23 and only now starting to learn the ins and outs of how credit works (not sure if I'm a late starter or not) and I'd like to learn as much as possible and also get my credit history going on the right track so when I do need to apply for car and home loans I'll be in good shape!

 

All I've got right now are 5 credit cards, and a few student loans in deferment.

In My Wallet:
AMEX BCE, Citi Forward, Chase Freedom

In My Sockdrawer:
AMEX Clear, Citi Platinum Select, US Bank Platinum, J.Crew
Valued Contributor
ptr2593
Posts: 1,486
Registered: ‎08-14-2011

Re: Statement Date


MarineVietVet wrote:

ptrutkowski wrote:

This is another probably pointless question because I know both are good practices, but does regularly having a 1-9% balance produce higher scores than regularly having 0 reported balance?

 

I ask because come October, when I hopefully will no longer have a revolving balance on any of my cards, I'd like to do whichever one will help my score/report more. 

Right now 2/5 of my cards have a revolving balance, and at the end of this week only 1/5, while the other 3 report 0.

 

I know you've told me before that 0 is not bad, but is 1-9% better?  I'm going to, for sure, keep 1-9% reporting on 1 card (probably the AmEx Clear, for an obvious reason), but I haven't decided what to do with the other 4.


Everyone's situation is different and there is no one size fits all approach to this but what seems to work well for most people is to have only one of their cards report a small (<9% of it's credit limit) balance each month and then pay in full before the due date. You can use it as much as you want during the month but what's important is the reported balance because for most cards whatever is reported on the monthly statement is what is used to calculate utilization for the month.

You might have to play around with the percentages for a few months to see what works best for you. Some people say that 1-3% utilization helps the most. For others it might be 5-9%. As I said it's not one size fits all. The only way to do this is to try different percentages each month as well as order a score, correct? (Sorry to steal this method from you hauling but it's a wonderful way to respond to individual parts of a message!)

On any other cards always try and have them report a zero balance each month. That doesn't mean you can't use them just make sure that the desired zero balance on these accounts is achieved several days before their statements post.

 

 

 

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".





Sorry to double post, but I haven't figured out how to multi-quote yet..?

 

Also, to echo Booner72, thank you Hauling for making things so clear and simple.  A lot of the other forum members are sharing the same information but aren't quite as in tune with how simple you have to make things for new people.  Thanks to everyone, I know it must be frustrating to answer the same questions every few months/weeks/days when people like myself come around.

 

 

In My Wallet:
AMEX BCE, Citi Forward, Chase Freedom

In My Sockdrawer:
AMEX Clear, Citi Platinum Select, US Bank Platinum, J.Crew
Senior Contributor
Booner72
Posts: 3,889
Registered: ‎05-24-2011

Re: Statement Date

PT (aka OP, that's your nickname by the way) --  Just go find it under "understanding" that's written by Booner72.  I have no idea how to post links but it's a day by day account of what happened as I paid stuff off.

 

Obviously you're not too late.  I wish I had taken a liking to learning about FICO when I was 23! 

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Moderator Emerita
Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: Statement Date

Glad to help! And MVV has it right about optimum reporting.

 

I've read claims that someone did better with 4% than 1% reporting or something, but I'm not convinced. Usually, there was something else going on that was responsible for the score.

 

Make your life simple: pick one card, ideally one whose statement posts every month on the same date, pay it off early except for $10, let that post, and then pay it off. (Don't forget that part!) Pay the others off in full (=PIF), so that they report $0. That results in optimum FICO scores.

 

However, there's no real point in doing this unless you're getting ready to app for something and you want to tweak your scores. The reason that most of us do this is because we're hooked on optimized scores, and it's painful to see them drop due to multiple cards reporting balances. Another point is that it takes a month or so to get everything reporting in this way, and if something comes up unexpectedly where you might want to app, you might not have optimized scores and reports. But unless it's a mortgage or auto loan, it's probably not that score sensitive, so you really don't have to do this.

 

My reason for paying early (besides liking the higher scores): I have massive adult ADHD, and all my negatives were late payments. By making my internal due date the statement date instead of the true due date, I add a 2-3 week cushion to prevent future lates. :smileywink:

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Valued Contributor
ptr2593
Posts: 1,486
Registered: ‎08-14-2011

Re: Statement Date

[ Edited ]

haulingthescoreup wrote:

Glad to help! And MVV has it right about optimum reporting.

 

I've read claims that someone did better with 4% than 1% reporting or something, but I'm not convinced. Usually, there was something else going on that was responsible for the score.

 

Make your life simple: pick one card, ideally one whose statement posts every month on the same date, pay it off early except for $10, let that post, and then pay it off. (Don't forget that part!) Pay the others off in full (=PIF), so that they report $0. That results in optimum FICO scores.

 

However, there's no real point in doing this unless you're getting ready to app for something and you want to tweak your scores. The reason that most of us do this is because we're hooked on optimized scores, and it's painful to see them drop due to multiple cards reporting balances. Another point is that it takes a month or so to get everything reporting in this way, and if something comes up unexpectedly where you might want to app, you might not have optimized scores and reports. But unless it's a mortgage or auto loan, it's probably not that score sensitive, so you really don't have to do this.

 

My reason for paying early (besides liking the higher scores): I have massive adult ADHD, and all my negatives were late payments. By making my internal due date the statement date instead of the true due date, I add a 2-3 week cushion to prevent future lates. :smileywink:  - This is exactly what I was going to do as well. 


I'd like to keep my score as high as possible (for self satisfaction :smileyhappy:), especially since the only thing I need to manage at  the moment is credit cards.  I'd like to get into good habits with them now so that in the future I do things like habitually pay a few days before the statement date instead of the true due date.

 

However, I don't want to buy a FICO every month for 9+ months (1-9%) to truly find my own personal optimum so I'll probably just pay whatever I can that pay period so that it falls somewhere in the 1-9% range.  I feel as though I've finally got a complete understanding of how this one tiny aspect of your score works.  Time to move on to something else!

In My Wallet:
AMEX BCE, Citi Forward, Chase Freedom

In My Sockdrawer:
AMEX Clear, Citi Platinum Select, US Bank Platinum, J.Crew
Valued Contributor
ptr2593
Posts: 1,486
Registered: ‎08-14-2011

Ok I lied.  Hauling (or anyone) could you help me underst...

[ Edited ]

Ok I lied.  Hauling (or anyone) could you help me understand my Citi dates.

 

Previous Statement Balance date was 07/19/11

Previous payment due date was 08/15/11

Last Statement Balance - 08/17/11

 

Payment Due Sept. 15, 2011

Next Statement Sept. 19, 2011

 

Current Balance: $1800/4000 and I'm in the introductory 0% APR period

Minimum Payment: $28

 

My understanding:

Short Version - Assuming I make no charges from now until 9/19


I have until 9/15 to pay $28 (to avoid a late fee) and, if payments went through instantly (I know they don't, but for the sake of argument and simplicity), until 11:59PM 9/18 to pay an additional $1412 (leaves a balance of $360/4000) to get a 9%UTL reported.

 

Also, let's assume the following:

As of 09/19/11 my balance is $0/4000
Next Due date is 10/15/11

Next Statement date is 10/17/11

 

Any dollar that I spend after 9/19 will not be due on 10/15 but, if unpaid, will be reported on 10/17?

 

 

Long Version - this was the initial post, but I decided to give a short version so you wouldn't get as annoyed :smileyhappy:

 


 

So, after re-reading one of your previous posts several times I am still a little confused.  Here's what I know (or think I know).

 

The balance on my card right now (8/17) is $1800.  If I don't pay $1800 by 09/15 I will pay interest and if I don't pay at least the minimum I will be late.  When will Citi report my balance?  Do some banks report your balance after your due date? (To me it looks like any charges that I accrue from 8/17 to 9/18 will be reported on 9/19).

 

OH.. I THINK I GET IT!  I think I was getting confused because I've been carrying a balance and not starting from 0 every period.

 

All unpaid charges up to 8/17 are due on 9/15.  What gets reported on 9/19 is whatever I charge and don't pay from 8/17-9/18 PLUS any balance carried over from the previous period.

 

As of 8/17 my balance is $1800, I am still in the introductory 0% APR period, and my minimum due 9/15 is $28.  So if I make no charges between now and 9/19 and pay only the minimum, Citi will report a balance of $1772 (-$28 PLUS my old $1800 balance)?

 

Sorry if it's hard to follow.  I literally typed out my entire thought process.

 

 

 

In My Wallet:
AMEX BCE, Citi Forward, Chase Freedom

In My Sockdrawer:
AMEX Clear, Citi Platinum Select, US Bank Platinum, J.Crew
Moderator Emerita
Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: Ok I lied.  Hauling (or anyone) could you help me underst...

 


ptrutkowski wrote:

...So, after re-reading one of your previous posts several times I am still a little confused.  Here's what I know (or think I know).

 

The balance on my card right now (8/17) is $1800.  If I don't pay $1800 by 09/15 I will pay interest and if I don't pay at least the minimum I will be late.  When will Citi report my balance?  Do some banks report your balance after your due date? (To me it looks like any charges that I accrue from 8/17 to 9/18 will be reported on 9/19).

 

OH.. I THINK I GET IT!  I think I was getting confused because I've been carrying a balance and not starting from 0 every period.

 

All unpaid charges up to 8/17 are due on 9/15.  What gets reported on 9/19 is whatever I charge and don't pay from 8/17-9/18 PLUS any balance carried over from the previous period.

 

As of 8/17 my balance is $1800, I am still in the introductory 0% APR period, and my minimum due 9/15 is $28.  So if I make no charges between now and 9/19 and pay only the minimum, Citi will report a balance of $1772 (-$28 PLUS my old $1800 balance)?

 

Sorry if it's hard to follow.  I literally typed out my entire thought process.

 


Well, it's late, and I'm a little foggy.

 

Did the $1800 show on your 8/17 statement? If so, then yes, you must pay at least the minimum by 9/15. If you don't pay the full amount by 9/15, you will owe interest on the unpaid balance, and that interest due will show up on your 9/whatever statement. If it didn't show on your statement, and it only shows up online as your current balance, then it's not due on 9/15.

 

(btw, does it say somewhere that your next statement will drop on 9/19? Some banks due publish that figure.)

 

* yawns *

 

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Moderator Emeritus
MarineVietVet
Posts: 14,084
Registered: ‎07-14-2009

Re: Statement Date


ptrutkowski wrote:

Everyone's situation is different and there is no one size fits all approach to this but what seems to work well for most people is to have only one of their cards report a small (<9% of it's credit limit) balance each month and then pay in full before the due date. You can use it as much as you want during the month but what's important is the reported balance because for most cards whatever is reported on the monthly statement is what is used to calculate utilization for the month.

You might have to play around with the percentages for a few months to see what works best for you. Some people say that 1-3% utilization helps the most. For others it might be 5-9%. As I said it's not one size fits all. The only way to do this is to try different percentages each month as well as order a score, correct? (Sorry to steal this method from you hauling but it's a wonderful way to respond to individual parts of a message!) That's correct. It does get expensive but it's the only way to be sure how the percentages from month to month affect your score.

On any other cards always try and have them report a zero balance each month. That doesn't mean you can't use them just make sure that the desired zero balance on these accounts is achieved several days before their statements post.

 

 

 







Valued Contributor
ptr2593
Posts: 1,486
Registered: ‎08-14-2011

Re: Ok I lied.  Hauling (or anyone) could you help me underst...


haulingthescoreup wrote:

 


ptrutkowski wrote:

...So, after re-reading one of your previous posts several times I am still a little confused.  Here's what I know (or think I know).

 

The balance on my card right now (8/17) is $1800.  If I don't pay $1800 by 09/15 I will pay interest and if I don't pay at least the minimum I will be late.  When will Citi report my balance?  Do some banks report your balance after your due date? (To me it looks like any charges that I accrue from 8/17 to 9/18 will be reported on 9/19).

 

OH.. I THINK I GET IT!  I think I was getting confused because I've been carrying a balance and not starting from 0 every period.

 

All unpaid charges up to 8/17 are due on 9/15.  What gets reported on 9/19 is whatever I charge and don't pay from 8/17-9/18 PLUS any balance carried over from the previous period.

 

As of 8/17 my balance is $1800, I am still in the introductory 0% APR period, and my minimum due 9/15 is $28.  So if I make no charges between now and 9/19 and pay only the minimum, Citi will report a balance of $1772 (-$28 PLUS my old $1800 balance)?

 

Sorry if it's hard to follow.  I literally typed out my entire thought process.

 


Well, it's late, and I'm a little foggy.

 

Did the $1800 show on your 8/17 statement? If so, then yes, you must pay at least the minimum by 9/15. If you don't pay the full amount by 9/15, you will owe interest on the unpaid balance, and that interest due will show up on your 9/whatever statement. If it didn't show on your statement, and it only shows up online as your current balance, then it's not due on 9/15.

 

(btw, does it say somewhere that your next statement will drop on 9/19? Some banks due publish that figure.)

 

* yawns *

 


Nope, it just says Next Statement Date 9/19

In My Wallet:
AMEX BCE, Citi Forward, Chase Freedom

In My Sockdrawer:
AMEX Clear, Citi Platinum Select, US Bank Platinum, J.Crew

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