General Credit Topics

[seanerin]

Hello all. I am planning to buy a car in August of this year and would like to ensure I am in the best possible credit shape. Here is a snapshot:
Scores--TU 794, EQ 774, EX 777
Credit--
Citi Diamond Preferred 8400/25000
BCP 0/24300
CSP 975/15000
Banana Republic Visa 500/10000
AMEX PRG 650 (as of now)
Student Loans 57000 (taking forever to pay off)

I am paying 400/500 a month on the Citi trying to get that as low as possible. The PRG used to be my everyday card but I am now using the CSP in that role at least until I spend 3000 (for the bonus). I expect the BR visa to be near 0 come the summer.

How can I manage my CSP so that it always reports a 0 balance? I will pay in full each month but I do that now with my PRG yet it always reports a balance on my credit report. On that note, is there a way to have my PRG report a 0 balance as well?

I have read that to get the highest possible score I should have only one card showing a balance (at 2-4 % util). Is this correct?

Finally, I was considering apping for the Discover IT to transfer my Citi balance. Would that be. Wise move?

Thank you so much.

[guiness56]

It depends on what gives you the best score but the percentage is 9% or below.

For optimum scoring have all but one card report 0 balances the other at 9% or below.  You will need to know when the CCC report to the CRAs to make sure it gets reported the way you want.  Once it is reported you can pay the balance to avoid interest.  You can tinker around to see what works best for you.

Paying down your cards will give you the fastest bump because utilization is the fastest way to see a score raise.

Where did you get your scores?

[seanerin]

Thanks for the response. I got my scores from here. How do I find out when the cards report?

[guiness56]

myFICO does not have an EX score.  The consumer hasn't been able to get it since Feb 2009.

You can call the CCC and ask them.  That would be the safest way.

[seanerin]

Thanks.  Yeah, the EX I got from the experian website so I am not sure if that is a fiko or fako score.  

[guiness56]

It is a FAKO.

[angelnyc]

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seanerin wrote:
Thanks for the response. I got my scores from here. How do I find out when the cards report?

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Cards usually report within 30 - 60 days.

[HoldingOntoHope]

The credit cards report your balance as of the statement date. As suggested above you can call the company to find out your statement date or you can look at your account statements and the information will be on there. To control what is reported you simply need to ensure that a payment is made a few days prior to the statement date and then don't use the credit card again until that date passes.

For my cards that I like to report as 0$ I stop charging with it about a week before the statement date. This gives pending charges a chance to reflect on the balance due. Then a few days before the statement date I log on to the account and make a payment for all the charges showing on the account (Pay in Full). Manipulating the balances due and number of accounts showing a balance is simply done to maximize score. If you are not planning any new major purchases or credit applications it is not a big deal. But some people on here like to do it on a regular basis. It does contribute to building a good solid financial plan that can keep you out of trouble in the future.

I was not always a responsible credit user and I have gotten a lot of education on credit and credit scores through participation in these forums. I am not currently in a financial position to pay off my cards and manipulate balances for maximum scoring but it is at least a long term goal. The short and intermediate term in the meantime is never be late and don't overextend myself to where I can not meet my credit obligations.

[Simply827]

Considering your scores as of now, I'd say you're already in good shape to get a good deal on a car loan.