Begginer Question: PIF before or after statement cuts

[Anonymous]

so now i have two new cards AMEX BCP, Discover IT as well as my BoA Secured that is about to graduate in a few weeks.

i am just learning. i have been PIF on my BoA before the statement even cuts. i don't know why, i just didn't really know what i should be doing. should i let the statements cut, them PIF. Also, I heard someones comment about only letting one card report a month. Why is this?

[vanillabean]

If your purpose is to increase your score, you would want to lower your utilization. Your utilization is based on your balances reported to the credit agencies, which typically takes place following the credit card's statement date, also called the statement cutoff. In other words, zero most of your credit card balances before the statement date, and you’ll be fine. For the obsessive mindset, keep a small balance on one card and zero the rest.

[takeshi74]

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@Anonymous wrote:

i am just learning. i have been PIF on my BoA before the statement even cuts. i don't know why, i just didn't really know what i should be doing. should i let the statements cut, them PIF.

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All depends on what you're trying to accomplish.  If you want to reduce reported utilization then you need to reduce your balance before the card reports.  Most cards report at statement end which is why the recommendation to pay prior to statement end is frequently made.

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@Anonymous wrote:

Also, I heard someones comment about only letting one card report a month. Why is this?

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Optimal scoring.  Generally speaking, fewer balances and lower utilization are favored by the scoring models.

I don't bother with either but my spend and my limits typically place my utilization at less than 10% and I'm not really looking to squeeze out additional points.