Will paying off balance EVERY month improve credit?

[Anonymous]

I was recently approved for a Citi Forward Visa, I would really like to use this card to boost my scores, and my creditworthiness the best way possible.

Should I carry a small banance? 

Should I buy an iPad and use the 7 months no interest, and charge nothing else?

Should I buy a cup of coffee every month, and pay it off when the statement comes????

This is something I've been wondering for quite some time, PLEASE HELP!!!!

[Anonymous]

Don't carry a balance, you'll get charged interest! Your credit score is not affected by whether or not you revolve a balance, that information isn't even reported to the credit bureaus.

[sandsanta]

Your closing balance is reported to CRA's.

[Anonymous]

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@Anonymous wrote:

Don't carry a balance, you'll get charged interest! Your credit score is not affected by whether or not you revolve a balance, that information isn't even reported to the credit bureaus.

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Incorrect, you don't pay interest if your interest rate is 0% (OP said 7 months) and your balance is reported each month. 

Having a low balance (0-9%) and only one card reporting a balance will help your score month to month.  

[Prettylady1]

If you can get the iPad for 7 months no interest I'd get it!!! I LOVE MINE!!!

[Anonymous]

I have some other AU cards: AMEX Blue Cash: 2200CL and a  Home Depot: 6500CL 

I'm thinking my utilization won't be such a big deal.  So since I wont have to pay interest, should I purchase something and pay every month for 7 months???

Will other card companies even see this card as a positive if I never have a balance?

[Anonymous]

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@Anonymous wrote:

I have some other AU cards: AMEX Blue Cash: 2200CL and a  Home Depot: 6500CL 

I'm thinking my utilization won't be such a big deal.  So since I wont have to pay interest, should I purchase something and pay every month for 7 months???

Will other card companies even see this card as a positive if I never have a balance?

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Other CCC will only see your balance at the time of application.  In other words, if you carry a 99% balance from January to October, pif in November, then apply in December, the only thing the CCC will see is your current 0 balance.  Your current balance only affects your current score.  As long as you are always on-time and never go over your credit limit, your credit card balances have absolutely no effect on long term scoring because FICO has no record of past balances.  You could potentially be at 99% utilization every month except for the month you want to apply for something and it wouldn't matter one bit.  Constantly having a high balance, however, could and probably will affect your relationship with whatever CCC you have the high balance with though.

You don't NEED to have a balance, but yes, assuming your AU cards have 0 balance, $500 Ipad will not hurt your utilization (500/12700 is about 4%).  As discussed in many threads on these boards, the best practice is to have 1 card reporting a balance and total utilization from 1-9% (varies from person to person).

[Anonymous]

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@Anonymous wrote:

I have some other AU cards: AMEX Blue Cash: 2200CL and a  Home Depot: 6500CL 

I'm thinking my utilization won't be such a big deal.  So since I wont have to pay interest, should I purchase something and pay every month for 7 months???

Will other card companies even see this card as a positive if I never have a balance?

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Other CCC will only see your balance at the time of application.  In other words, if you carry a 99% balance from January to October, pif in November, then apply in December, the only thing the CCC will see is your current 0 balance.  Your current balance only affects your current score.  As long as you are always on-time and never go over your credit limit, your credit card balances have absolutely no effect on long term scoring because FICO has no record of past balances.  You could potentially be at 99% utilization every month except for the month you want to apply for something and it wouldn't matter one bit.  Constantly having a high balance, however, could and probably will affect your relationship with whatever CCC you have the high balance with though.

You don't NEED to have a balance. 

This is EXACTLY what I needed to know!

Thanks a lot!

[Anonymous]

PTR,  Not to sound like an idiot, but I am new to this and I have been wondering.

How did you put my previous post into your reply???

[Odiseous]

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@Anonymous wrote:

PTR,  Not to sound like an idiot, but I am new to this and I have been wondering.

How did you put my previous post into your reply???

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