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05-23-2013 02:47 PM
Hello, I've been lurking for a few months and finally decided to post.
I'm in a pretty good credit situation right now but there's always room for improvement so I'd like to hear your thoughts I what I can do to further increase my FICO scores. I recently got a CLI on my PayPal Extras MC, my Discover More is hitting 6 months next month, my Chase Amazon card is only 2 months old, and my Amex BCE was opened this month. I let all my cards report a balance at the end of the month since I'm not currently applying for anything. I don't carry balances on anything, with the sole exception of a large purchase for my new job on my Discover this past month that I'll carry for the next couple months while I'm in the 0% APR window, (That $1900 purchase was good for 5% cash back ).
CK FACO 700-750 dending on reported UTIL
UTIL 10%-25% typically reported
PayPal Extras MC.....( 0/7500)
2 Students loans..........(5300)
05-25-2013 10:07 AM
I can improve on my util at any time, right now I'm just letting all my cards report a balance since I saw one person mention that Discover declined their CLI request citing that since they pif'd before the statment cut every month there was no reported balance activity. I'm not sure if any other CC companys have this policy so I'm just letting them all report for now and then when I plan to finance something I just let one report a balance and get my overall util down to about 2%.
05-25-2013 01:40 PM
well if you're going to let the balance report, I wouldn't let it report at 70%, which is what your discover is at. I don't understand if you have the ability to pay down your UTIL, just pay it down to between 1-9%. So that when you are ready to apply, that's what will be reflected. Otherwise, some banks may see the high balance and deny you just as much as PIF every month. but YMMV. Not to mentioned you would have to wait another month. Also, do you know when your cards statements cut? It would be good to know so that if you do have a card or two that you want to report a balance, you are better suited for when you go to app. Most cards will report to the CRAs a few days after teh statements are cut. Good Luck!
05-25-2013 02:40 PM
I understand exactly what you’re saying about having my credit profile in a constant state of readiness for apps so I won't have to wait a month. Right now I'm mainly focused on getting CLIs and haven't really been putting much care into preparing to apply for anything.
For Discover I've been led to believe that letting a balance post at the statement cut is needed for CLIs as someone mentioned getting denied for not letting a balance post. Also the large balance on my Discover hasn't posted yet as it's just from this month and won't be due until 7/02, nothing from past months has rolled over. I feel like running up this large balance (70% util as you pointed out), letting it post, and then paying it off as soon as it posts will help me get a larger CLI next month when I hit the 6 month mark as it demonstrates my ability to pay off a large balance and as the large balance should demonstrate a need for a CLI.
I'm hoping to get Discover to match my $7,500 line from GE, and then after 61 days I'll call up Amex for a 3X CLI to $7,500. This would put my total available credit at $24,500 and with my typical monthly spending coming in under $2,100 that would put my util at 9% before I start playing around with what I let post and what I pay off before the statement cut.
Let me know if what I'm saying makes sense or if there's something you would recommend changing.
05-25-2013 03:29 PM
I don't want you to confuse your "due date" with the "cut" or statement date. Obviously the due date is when the payment is due, but the statement date or "cut" date is usually 20+ days prior to that. So lets go with your discover card, since that is what is showing a balance:
Say your discover statement date is June 7th. You show a balance of $2100. Depending on when Discover reports to the CRAs(most usually do a couple days after), that is what's going to reflect on your reports for that month. $2100. now if you pay down the 2100 to say $300, all posting before the 7th, then it will report $300, which would put you at 10% UTI. Again, it is all dependent upon when you plan on applying for new credit. If it's not going to be in the next month or so, I say let it ride until you are ready. But when it comes to be that time, be sure that your UTI is below 10% for the best possible chance of a CLI. I hope this makes sense.