Clarify the balance reporting process?

[elsenyor]

I carry two credit cards for now, and neither have big limits, since I am still rebuilding. Here's the breakdown:
Card 1 - 1000 CL, statement date of 4th of the month
Card 2 - 500 CL, statement date of 14th of the month

Normally both are 0 balance, but I was reading on how one should report a >9% balance for that card in order to maximize a credit score increase. This past month, I allowed CC1 to report at $89. It's fast approaching CC2's report date, and I plan on it reporting 0, with the idea that the two cards are reported at 4% UT overall. Is this right? Or is it that you should let each card report 9% on its own date?  I think what I am doing is best, but since the dates are so far apart, does that change anything?  I am trying to let 9% be my guideline, since I am trying to leave bad credit behind once and for all.

Thanks for the clarification.

[09Lexie]

Let one cc report from 1-9% and the other report 0. 

[bobebob]

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@elsenyor wrote:

I carry two credit cards for now, and neither have big limits, since I am still rebuilding. Here's the breakdown:
Card 1 - 1000 CL, statement date of 4th of the month
Card 2 - 500 CL, statement date of 14th of the month

Normally both are 0 balance, but I was reading on how one should report a >9% balance for that card in order to maximize a credit score increase. This past month, I allowed CC1 to report at $89. It's fast approaching CC2's report date, and I plan on it reporting 0, with the idea that the two cards are reported at 4% UT overall. Is this right? Or is it that you should let each card report 9% on its own date?  I think what I am doing is best, but since the dates are so far apart, does that change anything?  I am trying to let 9% be my guideline, since I am trying to leave bad credit behind once and for all.

Thanks for the clarification.

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The general rule to max out your CS is to let one card report <9% (but more than 0) and have all others report $0.

But it is important to state that there is no on-going benefit to doing this every month.

While doing this will improve your CS slightly for the month you do it, it will not help at all when the next month rolls around.  The CS is purely a snapshot of your credit at the time it is pulled.

Unless you are trying to bring your score up to a level that will give you a better interest rate on a new loan you are planning to apply for, there is really little point in going through this proceedure every month.

I do it a couple of time a year just to see what my "best"  CS could be.  Otherwise it isn't worth the effort.

[blondy250]

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@bobebob wrote:

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@elsenyor wrote:

I carry two credit cards for now, and neither have big limits, since I am still rebuilding. Here's the breakdown:
Card 1 - 1000 CL, statement date of 4th of the month
Card 2 - 500 CL, statement date of 14th of the month

Normally both are 0 balance, but I was reading on how one should report a >9% balance for that card in order to maximize a credit score increase. This past month, I allowed CC1 to report at $89. It's fast approaching CC2's report date, and I plan on it reporting 0, with the idea that the two cards are reported at 4% UT overall. Is this right? Or is it that you should let each card report 9% on its own date?  I think what I am doing is best, but since the dates are so far apart, does that change anything?  I am trying to let 9% be my guideline, since I am trying to leave bad credit behind once and for all.

Thanks for the clarification.

---

The general rule to max out your CS is to let one card report <9% (but more than 0) and have all others report $0.

But it is important to state that there is no on-going benefit to doing this every month.

While doing this will improve your CS slightly for the month you do it, it will not help at all when the next month rolls around.  The CS is purely a snapshot of your credit at the time it is pulled.

Unless you are trying to bring your score up to a level that will give you a better interest rate on a new loan you are planning to apply for, there is really little point in going through this proceedure every month.

I do it a couple of time a year just to see what my "best"  CS could be.  Otherwise it isn't worth the effort.

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100% correct, many people here don't realize this is just a gimmick to juice your score a few points before an major app (IE mortgage).