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leaving cc balances ?

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Anonymous
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leaving cc balances ?

Hi, I'm new and could yuse some advice. My credit needs help bad. I've been reading everything I can on how to improve it. I've never had any cc's and am still learning about them, however I got 2 recently because I didn't have any revolving accounts except for my student loans that are In defirment. Anyways I've heard many people say leave a small balance on cc to boost scores.. is this true ? And do you mean not pay it off in full each month or to keep my utilization at a small balance ? I just got my first statement and paid it off in full.. it reported 7%utility rate which i where i plan to keep it since it reported as great. But I don't know if it got reported before or after I paid the bill.. I think before. Haven't received the other new cc statement yet. Again Are you all saying I should let some of the balance roll over thus pay interest on the portion not paid?.. in order to get the most credit increase possible ? Thanks in advance
Message 1 of 7
6 REPLIES 6
Anonymous
Not applicable

Re: leaving cc balances ?

1%-9% on one card anecdotally will give your credit score the highest boost. Your utilization has no "memory" - meaning you could have all your cards maxed out, and then pay them all down and see a huge jump in credit score as soon as the following month.

 

Typcially, whatever balance is on the statement will be reported to the credit bureaus. And remember, your credit score is only important when you are looking to obtain new credit.

Message 2 of 7
StartingOver10
Moderator Emerita

Re: leaving cc balances ?


@Anonymous wrote:

1%-9% on one card anecdotally will give your credit score the highest boost. Your utilization has no "memory" - meaning you could have all your cards maxed out, and then pay them all down and see a huge jump in credit score as soon as the following month.

 

Typcially, whatever balance is on the statement will be reported to the credit bureaus. And remember, your credit score is only important when you are looking to obtain new credit.


^^^Yes use and pay your cards on time, everytime.  You don't need to micromange your score all the time IMO. However, the time to optimize your score is about 60 days prior to making an application for credit (for auto, home or another cc). This is when you would have all revolving accounts (cc's) at zero except one card and it should report 1%-9% of your credit line.

 

(The first line that dpeezy wrote is what we mean by optimizing your credit score.)

Message 3 of 7
Anonymous
Not applicable

Re: leaving cc balances ?

Thanks So they basically report my statement balance which is where the utility percentage comes in.. reguardless if it's been paid in full correct ? I just don't it reporting 0 usage because it's been paid by the time they report. . Otherwise it won't be helping my score. I need to buy a home a.s.a.p so I'd say my score is definitely important right now lol
Message 4 of 7
Anonymous
Not applicable

Re: leaving cc balances ?

Thank you, and yes I'm pretty much addicted to "Mico managing" my credit at this point lol
Message 5 of 7
Anonymous
Not applicable

Re: leaving cc balances ?

Yes, for most credit card companies, whatever balance is on your monthly statement will be reported.

Message 6 of 7
DallasLoanGuy
Super Contributor

Re: leaving cc balances ?

remember, even if you pay off every month, the card can report before you pay.

knowing the report date will help you manage balances.

 

i tell my clients to just leave $20 on there. pay the bill early(but after it reports) and make new charges right away if necessary to get a new small balance.

 

having a $20 balance is better than a zero balance

 

Retired Lender
Message 7 of 7
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