Credit Cards

[coroc]

So question is?? Is it bad for a balance to report? Even though u ALWAYS pay in full?

[creditnocash]

it is and it isnt. 

if your not applying for anything then go for it. 

any points you would lose from util and another card reporting will go back as soon as you pif and they report the card. 

[coroc]

U answered that question perfectly. Thats exactly wat im doing cuz im in the garden but wanted to know if i PIF after a few months or so(0% APR on cards) will my score bounce back

[coroc]

Thank you CREDITNOCASH

[nicholasyud]

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creditnocash wrote:

it is and it isnt. 

if your not applying for anything then go for it. 

any points you would lose from util and another card reporting will go back as soon as you pif and they report the card. 

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Someone please confirm this.

Let said both A & B had a same credit profile. Same credit score limit and etc.........

A always paid it in full and keep the balance utili under 9%.

B carry balance and make payment on time.

At 6 months mark, IF they both keep the Utili under 9%.

Will their score  increase the same at the 6 months mark even thou they using different method to manage their credit card payment.????

[Shogun]

Excellent question,, and I'm very curious to see some input.

[thom02099]

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nicholasyud wrote:

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creditnocash wrote:

it is and it isnt. 

if your not applying for anything then go for it. 

any points you would lose from util and another card reporting will go back as soon as you pif and they report the card. 

---

Someone please confirm this.

Let said both A & B had a same credit profile. Same credit score limit and etc.........

A always paid it in full and keep the balance utili under 9%.

B carry balance and make payment on time.

At 6 months mark, IF they both keep the Utili under 9%.

Will their score  increase the same at the 6 months mark even thou they using different method to manage their credit card payment.????

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You said B carries a balance and makes payments on time versus A PIF and keeping util under 9%. 

I think it depends on several factors, there's no hard and fast answer. 

1 - If A is keeping Util under 9%, I think it depends what percentage rate, and for how long.  This could vary. 

2 - B carries a balance but makes payments on time.  But what is the size of the balance?  Couple hundred $$?  Several thousand $$?  That's going to be a factor also

3 - B may be making payments on time, but if only paying the minimum and not really reducing the overall balance, that may have an impact.

4 - You initially said that A and B had the same credit profile; same credit,same score, same limit, etc.  But they don't.  The fact that they pay differently is the diference in their profiles.So they are not identical.  And that could impact scores.

And as creditnocash stated (correctly) if you're not applying for anything, then go for it!  Scores are going to go up and down.  The dings one takes are made up when the benefits of those dings are less of a factor and the benefit part kicks in.

[creditnocash]

I haven't done a full experiment or anything, but in the months leading up too black friday/christmas i was playing with util and such. 

i didnt let anything HUGE report but i didnt spend that much ethier. 

since a credit score is a snapshot of your credit at THAT moment it can vary by person and its obviously ymmv. 

i thought it was a sticked post but cant find it where people actually did play the game for up too 6 months. 

i pif on all cards but 2 (one spending and one 0% best buy purchase) when i let one other report i lost anywhere from 3-6 points. 

my cards were never maxed though. then i let a second report and another -5 points dropped. then the next month came around and i paid both in full etc.. 

i regained the points i lost and then some 

(but also some accounts were over the six month mark and there were other contributing factors!)

like i said your credit score is a snap shot! 

so as long as you pay on time, it shouldnt really matter until your applying for something

im just ocd and hate seeing my util so high(over 10%). i stress over the fact that i did not pif and ill be getting interest tacked on lol. ( i dont;let balances report, but you get the idea)

[creditnocash]

another thing i didnt mention to the a and b thought. 

i know on MY reports from annualcredit report i can see the balances/limits/min payments/actual payments/date paid vs due. on softs you cannot. 

since each person is different no matter who they are its all relative info. 

[LionLaw]

I think the answer is that the utilization factor of your FICO score only considers present balances; it doesn't take into account your history of balances. Utilization of X% will give you a FICO score of Y; it doesn't matter if your utilization last month was 100% or 0%. Past balances are on your report, and might be a factor in manual reviews, but from my understanding of FICO scoring, past utilization simply isn't a part of the algorithms.