No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
I'm charging this card $1 a month.
Obviously I have to report this so I get the reward. Am I better off paying off all my other credit cards or letting another card report? Are there any future repercussions if my credit reports show only $1 a month amongst all my other cards?
I'm considering leaving a balance on my IHG Chase. That would give me another 15 days to pay down the balance if I need to report a $0 balance to maximize my score.
@Anonymous wrote:I'm charging this card $1 a month.
Obviously I have to report this so I get the reward. Am I better off paying off all my other credit cards or letting another card report? Are there any future repercussions if my credit reports show only $1 a month amongst all my other cards?
I'm considering leaving a balance on my IHG Chase. That would give me another 15 days to pay down the balance if I need to report a $0 balance to maximize my score.
Fico also scores on the number of cards reporting a balance and the size of the balance doesnt matter its highly possible you will lose points for each additional card reporting a balance.
@gdale6 wrote:
@Anonymous wrote:I'm charging this card $1 a month.
Obviously I have to report this so I get the reward. Am I better off paying off all my other credit cards or letting another card report? Are there any future repercussions if my credit reports show only $1 a month amongst all my other cards?
I'm considering leaving a balance on my IHG Chase. That would give me another 15 days to pay down the balance if I need to report a $0 balance to maximize my score.
Fico also scores on the number of cards reporting a balance and the size of the balance doesnt matter its highly possible you will lose points for each additional card reporting a balance.
This^^^^..
@Anonymous wrote:
@gdale6 wrote:
@Anonymous wrote:I'm charging this card $1 a month.
Obviously I have to report this so I get the reward. Am I better off paying off all my other credit cards or letting another card report? Are there any future repercussions if my credit reports show only $1 a month amongst all my other cards?
I'm considering leaving a balance on my IHG Chase. That would give me another 15 days to pay down the balance if I need to report a $0 balance to maximize my score.
Fico also scores on the number of cards reporting a balance and the size of the balance doesnt matter its highly possible you will lose points for each additional card reporting a balance.
This^^^^..
I can understand this. But will a lender look at my credit report see $1 charge and nothing else. Will that hurt my chances of getting a loan?
Some CCC's report how much you pay each month. Under manual review, they can see you are using your credit cards, so no worries.
Others do not currently report your payments to the CRA's. It is unlikely to effect your ability to get a loan (auto, mortgage, etc). However, I would be a little concerned about a CCC not wanting to extend credit to someone who doesn't use the credit cards they have.
My personal philosophy is to let the statements post with whatever I charge in a month. Then pay if full before the due date. With multiple cards reporting, my score is not maxed out most months. But I can quickly max out the score by prepaying for a month. For me it is mostly about convenience.
If I was worried about my credit score dropping enough to trigger AA, I would probably limit the number of cards that report a balance. But one card reporting $1 and another card reporting a small balance is very unlikely to trigger any kind of AA. Having two cards report a balance will not optimize your score for that month, but it is easy enough to maximize if needed. So I think it is fine to let two cards report a balance if you don't mind the micromanagement. Or letting only one card report $1 would also be fine. Or you can be like me and let most of your cards report a balance and pretty up your CR's as needed.
@CreditDunce wrote:Some CCC's report how much you pay each month. Under manual review, they can see you are using your credit cards, so no worries.
Others do not currently report your payments to the CRA's. It is unlikely to effect your ability to get a loan (auto, mortgage, etc). However, I would be a little concerned about a CCC not wanting to extend credit to someone who doesn't use the credit cards they have.
My personal philosophy is to let the statements post with whatever I charge in a month. Then pay if full before the due date. With multiple cards reporting, my score is not maxed out most months. But I can quickly max out the score by prepaying for a month. For me it is mostly about convenience.
If I was worried about my credit score dropping enough to trigger AA, I would probably limit the number of cards that report a balance. But one card reporting $1 and another card reporting a small balance is very unlikely to trigger any kind of AA. Having two cards report a balance will not optimize your score for that month, but it is easy enough to maximize if needed. So I think it is fine to let two cards report a balance if you don't mind the micromanagement. Or letting only one card report $1 would also be fine. Or you can be like me and let most of your cards report a balance and pretty up your CR's as needed.
I'm willing to micromanage to keep my score the highest at all times. I'd prefer that instead of having to wait up to 40 days for my score to max out again (30 days for a new statement + 10 days to report to TU and EQ is ridulous.)
If you don't mind the work, then try experimenting with just the BBR reporting vs. having a second card report a small balance. When I tried it, didn't change my score. The one card reporting 1-9% balance is a good rule of thumb. But finding the exact sweet spot takes some experimentation.
PS. I was just reading CA's post on being denied for Lending club. One of the reasons was: "Insufficient credit history based on account balances." I don't think it was the real reason he was denied. I don't even know what it really means. But I could see it applying to someone who only let's one card report $1 balance each month.