04-23-2013 06:55 AM
I finally reached 678. I got a secured credit card for $ 3,000.00 and I was told to use it. I was told by the banker to always keep a low balance. I do not want any debt but I thought I have to use it since "everyone" tells me so. There was a charge for $25.00 yearly fee and I paid that as soon as it was posted in January . I bought a dress for
$ 230.00 on March 5th and on March 10 I got a message from my fico saying that my balance had increased with $205.00. Therefore my score decreased 3 points. I still had three weeks until my payment was due. However, I paid $ 230.00 that day. With other words, Wells fargo reported a balance of $25.00 even though it was paid the first day it was posted. I still have not seen my credit go back up. It certainly was quick to decrease my score but now it is well over a month ago and it is still 675. Why would I be told to use the credit card to build a credit if my credit goes down for buying something for a small amount of money? Now I do not dare to use it . I am trying to build my credit, not ruining it. I can see scores going down if a balance remains unpaid but after spending just a small amount of money and repaying it immediately? I call it immediately since I paid it as soon as my charge was posted. I just do not understand. Sorry if I cannot explain well enough but I am trying to keep the posting short.
04-23-2013 07:38 AM
You need history with that card. One on-time payment isn't going to boost your score. Months of on-time payments will. Since on-time payments have a heavier weight on your credit score than credit utilization, it will soon boost your score by keeping a low debt-to-income ratio with months of on-time payments.
04-23-2013 10:15 AM - edited 04-23-2013 10:17 AM
OP, CCs only report once per month and they'll report the balance you had on your statement date. They'll report typically within 2-3-4 days of your statement date. Your FICO score will fully rebound if you pay it off and let it report at $0, assuming it increased due to that increase.
For max points, pay off all of your CCs except for once and let those report $0, and get one to report a balance of under 9% of your CC's CL.
FICO doesn't care if you use your CCs or not. Your CC will update regardless. Just use it every 4-6 months to keep some activity on it. Some creditors have been known to close unused accounts.
BTW, you can be 100% debt free, still owe nothing [and still use your CCs]. It's just a matter of timing your CC usage with your payments in relation to your statement date.
05-10-2013 04:30 PM
Thank you I understand. I will check all the dates and use a small amount once in a while. I don't owe anything but like I said, there has not been an
increase after it was paid. Today is May 10th two months exactly and no change in my score. I really appreciate you getting back to me. Have a great weekend!
05-14-2013 05:57 PM
they want to see more time than 2 months,,giveit 6 months and see if its going up,,of course be 30 days late one time during that and your score will tank.
Establishing credit is a long process,,they want to see how stable you are with making payments and being responsible with finances over the long haul