if you rack up a balance on your cards, be sure that it's not over 10%--better yet, make sure it's not over 5%. If it is over 10%, then pay it down to almost nothing BEFORE YOUR STATEMENT is generated. I find that credit card companies typically report the balance at the time your statement is generated.
Example of what I do:
I use only AMEX blue cash and Citi Dividends now because they give me cash back
I charge everything I can to these cards.
A week before the statement is generated I pay down the balance on these 2 cards to under $10.00.
Once I see the cards report a balance under $10 to the credit agencies, I start using them again and repeat the cycle.
It is working very well for me so far--my utilization has stayed under 10% for the last 4 months and this past month it was less then 1%. You get max points for having lowest utilization possible.
Redamagon wrote:I am not following this???!!?? What are you saying? I don't get it? From now on I am charging everything that I buy on my credit cards and and paying off before the 25 days before charge. So, I guess this is the best waay to improve credit right? Or there is a better way? I only have 3 credit cards. Should I get more to improve my credit score or what?unless your having problems with too many accounts with balances then I would just make one payment and let the current cycle's charges take their free ride to the next statement, or if your applying for credit after your upcoming statement, you might want make a extra payment to ensure your balance will be under 10% of your Cl for MAX fico points.other wise you have to use credit to get credit and if your CCs are always reporting $0 it doesn't appear your using credit even you are, your just paying it off before it gets reported to CRA
Too many accounts with balances = FICO scores of 792, 785, 734. I'm not buying what you're saying!
How many accounts do you have Fused? I envy you. lol
fused111 wrote:Too many accounts with balances = FICO scores of 792, 785, 734. I'm not buying what you're saying!
How many accounts do you have Fused? I envy you. lolMy TLs:6 open CCs (revolving), 1 PIF Amex Gold card, 1 closed and paid auto $0 balance, 2 open installment loans, 1 closed AU account with a long history. All accounts are in good standing, 0 derogs. Util is 3-4% on all revolving accounts. EX is inaccurately reporting my Amex Gold card and does report two other POSITIVE accounts, thus the lower score.
I now have 8 cards reporting 0 balances and 1 reporting at $16. TU went up 18 points, EQ went up 21 points and EX is up 21 points.
MidnightVoice wrote:Sometime soon I should know the effect of having all 5 of my CCs reporting a zero balance.According to perceived wisdom, this should hurt my scores
I think I will be retired before I get to 700 from EX (and the others will be 800 plus way before then )
fused111 wrote:Besides I will be dead before EX gives me a score over 775.