Understanding FICO® Scoring

[RM21]

Im a new CC user so I want to get this right. I have 2 new unsecured cards. I want to make sure my utilization is around like 7-9%. So the one card has a $300 limit. I havent used it but got a statement online with $35 due 2-18 for annual fee, which dropped my limit to $265 current. I believe that total alone is just above the util i want. So if im thinking right pay this off at least 5 days before the due date for 0% util to report?

Then this other card, $500 limit. Havent used it yet, no statement yet. I'm thinking use about 9% of the limit on this on like gas or whatever then the big question...How & when do I pay get this 9% to report & if I let it report will I end up paying interest?

I also wouldnt mind the quickest payment method that'll post? Thanks

[doc101]

I would like to know the answer to that as well...........

[guiness56]

It would all depend when your statement posts.  You may need to play around with it to see.

FICO has no memory so if you miscalculate the posting and get it right the next time, whatever score drop you had will come back.

[JCSC]

From what I have gathered and used for myself is that you should pay down the balance to within 3-9% of available credit in order to achieve the best score increase.  Just multiply the available credit by .03-.09 and that would be your amount you want to be posted on statement date.  Whatever percentage of credit used is utilization.

On one of the free credit monitoring sites, I had 7% my first month and was scored as a "A", and 0% my second month was scored as a "C". 

Good luck with the score game!

[guiness56]

You never want a 0% reported.  FICO doesn't like that.

[Lasardo]

I think you are making this harder than it is.. 

Use the card.

 Pay in full every month so you don't pay  interest.  Pay before the cycle date But let it cycle every 3-4 month, meaning let the cc report a balance every few  months so it does not look like its been siting in a sock drawer accumulating dust.  

I have maxed my cards every single month for a year and PIF every month..I went from 554-728 and it keeps going up.  I truly think maxing and paying in full gives you the best mileage.  Have a bill paid every month off the card, a phone bill for instance if you do not want to max it.

Also, keep between 3-4 CCRDS, at least one department store card and 1installment loan (look up credit builder accounts if you do not have a car loan) and a mortgage will give you the highest CS because it shows more responsibility. 

Remember, your score is meant to fluctuate, if it drops it can go up, you can recover your score back.  ...it's not as if it drops and you can't get that score back, experiment a little with what you are doing because everybody's mileage is different. 

Good luck