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Established Member
Posts: 80
Registered: ‎10-12-2012
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Credit Card Rebuilding Help

Hey guys,

 

I am currently rebuilding my credit and the whole thing has had a strong learning curve. I am finally understanding some of it though. I had 1 question which I guess I didn't understand at first. I have a few credit cards now, at first I really didn't use any of them. I guess doing this does not help you build up your credit much. Since then I have started to actively using most of them. Now I'm not talking about a 1 month score bump I'm talking long haul what is better to pay off my balance in full every month or keep paying it down then charge again ? or does it not even matter as long as your showing on time payments and using them. I don't need to use the cards to buy anything its just to help my credit. I'm not spending $500 and maxing them out its a simple $50 charge here maybe $100 there.  I don't really care about saving $2 from intrest, I just want to know if its better to carry a balance and show payments on it every month on time, or to pay it off in full. I'm looking at purchasing a house next year and need to get my score up 40-50 points minimum before then and the higher the better.

Regular Contributor
Posts: 193
Registered: ‎05-23-2007
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Re: Credit Card Rebuilding Help

You should PIF all except one and let that report at 9% or less utilization.


No apps until 8/2014
March 2013 Starting FICO Score: EQ: 584 TU: 564 EX: ??
August 2013 Current FICO Scores: EQ:664 EX:684 Walmart TU: 666
Epic Contributor
Posts: 22,406
Registered: ‎01-17-2008
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Re: Credit Card Rebuilding Help

For optimum FICO scoring, as the other poster said, all but one report 0 balance, the other at 9% or below.  YMMV and you can tinker with the % to see where it gives you the best score.

 

Also, making on time payments over a 6 month to year time frame, letting the CC age, will help a lot.

Established Member
Posts: 80
Registered: ‎10-12-2012
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Re: Credit Card Rebuilding Help

I know this already, I'm talking other than the slight score BUMP if you have everything paid off at 0 or 9% usage,  does it make a diffrence for 2 year payment history if the balance is paid off in full each month or has a balance that is paid on time each month ?   Is there a difference on how it is reported ?

Regular Contributor
Posts: 158
Registered: ‎04-02-2013
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Re: Credit Card Rebuilding Help


dzemboc77 wrote:

I know this already, I'm talking other than the slight score BUMP if you have everything paid off at 0 or 9% usage,  does it make a diffrence for 2 year payment history if the balance is paid off in full each month or has a balance that is paid on time each month ?   Is there a difference on how it is reported ?


I think if you are talking longterm, it doesn't matter if you PIF or carry a balance as long as you pay on time every month.  I don't think the CRA reports will show whether or not you carried a balance.  They just show that you paid on time every month.  If you are not apping for new cc or mortgage, then keeping your utilization down to 9% on one card and the rest at 0% has less importance IMO.

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