04-02-2013 10:26 AM
Carrying a balance is ALWAYS a bad thing!!!
There's a huge difference between reported utilization and carrying a balance. Going through it is difficult on a cell phone, but if you follow the links on this thread, and the links in the subsequently linked threads (it's a maze of links) you should be able to find the difference between reported utilization and carrying a balance.
Basically, carrying a balance means paying interest by not paying off ALL of your charges by the due date. Utilization only involves the balance reported to the credit bureaus (typically on the statement close date).
I really need to write a big sticky on this...
oh, I didn't say carrying a balance, I was just talking about reported utlization, if you have a statement on your card being maxed out but you pay it off in full after the statement cut, its still going to be reported as being at the whole amount of the CL
but I know you should always pay off your balance by the end of the grace period each month so you do not get charged any interest
but as far as utilization goes, if you do pay interest and carry a balance it is only a short term loss of pionts, if you then pay off the balance and let it report at 1-9% your score will go back up, correct?
and paying interest?carrying a balance in its self doesn't affect your score does it?
because the CRAs dont know if its all new charges this month of if youre carrying a balance, right?
04-02-2013 10:34 AM
I'm sorry I misunderstood. If you pay the balance off before the statement cuts, you'll be fine. There are some exceptions, though. My CU reports the balance as of the day they report to the CRAs, NOT the statement balance. The statement cuts on the 11th and they report on the 24th. I've learned not to use the card until after the 24th.
04-02-2013 10:36 AM
04-02-2013 10:46 AM
04-02-2013 10:49 AM
04-02-2013 11:07 AM
I misunstood the difference between carrying a balance and utilization. I was thinking that if you had a balance on your card you were OK as long as it was no more than 10% of your limit.
So just owning a credit card and not using it can help your credit?
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.