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Valued Member
michintom
Posts: 37
Registered: ‎01-11-2013
0

Re: Credit Cards now paid off.


p- wrote:

michintom wrote:
Oh no. I just spent $180 on my amazon card (9%) and $8 on my capital one (3%). Guess I need to pay off my cc asap. Since you mentioned the better loan deal, I'm actually trying to get myself to 720 for tier 1 auto loan. Other than paying off both my cards before the statement date, what would be a faster way?

Thanks again :smileyhappy:

It only matters when you are going to apply for credit.  Your scor will fluctuate month to month depending on statement balances and utilization.  Plan ahead for apps, and two months before any app tweak your balances so you are at 3% util, and make sure all but one post 0 balance at statement time.  This will get you the best possible score.

 

Also, once you've had the cap1 for a year, hit them up for a CLI.  


Got a text yesterday from myfico and it went up by 2 points.   Currently at 686 now.  

So what I'm suppose to do is make sure the balances are at 3% util for one of the card and the other card to post 0 balance by the statement time.  Does it matter which card shows the 0 balance and which card uses 3%?  I have two cards, Capital One with $300 and Amazon Store Card with $2000.  


Starting Score: 660
Current Score: 691
Goal Score: 850


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Frequent Contributor
bobebob
Posts: 257
Registered: ‎08-14-2011
0

Re: Credit Cards now paid off.


michintom wrote:

p- wrote:

michintom wrote:
Oh no. I just spent $180 on my amazon card (9%) and $8 on my capital one (3%). Guess I need to pay off my cc asap. Since you mentioned the better loan deal, I'm actually trying to get myself to 720 for tier 1 auto loan. Other than paying off both my cards before the statement date, what would be a faster way?

Thanks again :smileyhappy:

It only matters when you are going to apply for credit.  Your scor will fluctuate month to month depending on statement balances and utilization.  Plan ahead for apps, and two months before any app tweak your balances so you are at 3% util, and make sure all but one post 0 balance at statement time.  This will get you the best possible score.

 

Also, once you've had the cap1 for a year, hit them up for a CLI.  


Got a text yesterday from myfico and it went up by 2 points.   Currently at 686 now.  

So what I'm suppose to do is make sure the balances are at 3% util for one of the card and the other card to post 0 balance by the statement time.  Does it matter which card shows the 0 balance and which card uses 3%?  I have two cards, Capital One with $300 and Amazon Store Card with $2000.  


No, it shouldn't matter.

 

That is the most dificult part for me.  I use my Costco AMEX for everything I can.  But for those places that don't take it, I use my Walmart Discover. There are usually pending charges on both right around the time the statement posts.  I'm not usually able to get one showing a $0 bal.  And although the total util is in the low single digits, I will usually see a reason my score could be higher is that I have balances on more than one card.  It is slightly anoying.

bobebob || Nov: My FICO SW EQ(Upgraded Version) = 822 ||Sept: Walmart TU Fico=838Goal = FICO's>800 || In my wallet: CostcoAmEx(20k), DCU Visa Platinum (10k), BoA Visa Signature (17.1k), Walmart Discover (7.5k), AmEx Corporate (5k). All PIF every month.
Valued Member
michintom
Posts: 37
Registered: ‎01-11-2013
0

Re: Credit Cards now paid off.


bobebob wrote:

michintom wrote:

p- wrote:

michintom wrote:
Oh no. I just spent $180 on my amazon card (9%) and $8 on my capital one (3%). Guess I need to pay off my cc asap. Since you mentioned the better loan deal, I'm actually trying to get myself to 720 for tier 1 auto loan. Other than paying off both my cards before the statement date, what would be a faster way?

Thanks again :smileyhappy:

It only matters when you are going to apply for credit.  Your scor will fluctuate month to month depending on statement balances and utilization.  Plan ahead for apps, and two months before any app tweak your balances so you are at 3% util, and make sure all but one post 0 balance at statement time.  This will get you the best possible score.

 

Also, once you've had the cap1 for a year, hit them up for a CLI.  


Got a text yesterday from myfico and it went up by 2 points.   Currently at 686 now.  

So what I'm suppose to do is make sure the balances are at 3% util for one of the card and the other card to post 0 balance by the statement time.  Does it matter which card shows the 0 balance and which card uses 3%?  I have two cards, Capital One with $300 and Amazon Store Card with $2000.  


No, it shouldn't matter.

 

That is the most dificult part for me.  I use my Costco AMEX for everything I can.  But for those places that don't take it, I use my Walmart Discover. There are usually pending charges on both right around the time the statement posts.  I'm not usually able to get one showing a $0 bal.  And although the total util is in the low single digits, I will usually see a reason my score could be higher is that I have balances on more than one card.  It is slightly anoying.


Thanks for the reply!

Hopefully I'm doing this correctly.  My capital one is showing 0 balance and my amazon store card is at 9% util.  After my statement arrives, I'll pay off the card fully and hope for my score to go up again :smileyhappy:


Starting Score: 660
Current Score: 691
Goal Score: 850


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New Member
PolarBearCO
Posts: 7
Registered: ‎06-29-2007
0

Re: Credit Cards now paid off.

Personally, I think the extra points toward your FICO is somewhat of a myth for the utilization.  I'm sure it helps in some situations but I do NOT believe it is necessary.  My wife and I are both sitting around 800 with no balances.  She has one credit card and a history of home mortgages.  I have about ten credit cards, a history of car loans, and no history of a mortgage.   (We just got married a few months ago.  We haven't made it to the bank yet to add me to the mortgage.  I should do that someday.  I'm curious as to what that'll do to my score.)

 

Seriously, though.  It might help those in the 600s or low 7s, but I'm not going to bother with a credit card balance to go from 798 to 810, or whatever it would do for me.

New Visitor
BCWhite
Posts: 2
Registered: ‎01-23-2012
0

Re: Credit Cards now paid off.

I have never heard of the less that 10% balance part. I have been told numerous times that your want 30% or less balance on all cards to increase your score. Myabe I've been doing it wrong all along.

Moderator
Shogun
Posts: 12,952
Registered: ‎04-15-2011
0

Re: Credit Cards now paid off.

Actually util has a large part in your FICO scores.  It's one of the easiest and fastest ways to give your score a bump.  And it's not just the util, it's the amount of cards that show a balance.  I had a 19 point drop from having 2 accounts with a balance even though they were small.  And yes, my scores are in the 800 range too, so it does affect them.


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+

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Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
Valued Contributor
Gunnar419
Posts: 1,183
Registered: ‎01-23-2013
0

Re: Credit Cards now paid off.


BCWhite wrote:

I have never heard of the less that 10% balance part. I have been told numerous times that your want 30% or less balance on all cards to increase your score. Myabe I've been doing it wrong all along.


The 30% rule is common wisdom in many places -- over at CK, for instance, and in a lot of "Credit Management 101" type articles. I think the intention there is just to say, "Do that and you won't be in any trouble." And that's true.

 

CRAs, however, still consider that on the high side for utilization.

 

The 9% on one card rule that everybody talks about at MyFico is (IMHO)  for people who are really, really trying to fine-tune their credit scores or outwit the scoring systems.

 

New Visitor
BCWhite
Posts: 2
Registered: ‎01-23-2012
0

Re: Credit Cards now paid off.

Thanks for the info. I read it on CK, but was told it by my potential lender. Ill have them all paid off this week. Will be interested to see how it affects my score.
Moderator
Shogun
Posts: 12,952
Registered: ‎04-15-2011
0

Re: Credit Cards now paid off.

Be careful following what you read on CK.  I could use a magic eightball and come to a closer real credit score than the one they provide.  


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+

Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
Moderator
guiness56
Posts: 22,406
Registered: ‎01-17-2008
0

Re: Credit Cards now paid off.


Gunnar419 wrote:

BCWhite wrote:

I have never heard of the less that 10% balance part. I have been told numerous times that your want 30% or less balance on all cards to increase your score. Myabe I've been doing it wrong all along.


The 30% rule is common wisdom in many places -- over at CK, for instance, and in a lot of "Credit Management 101" type articles. I think the intention there is just to say, "Do that and you won't be in any trouble." And that's true.

 

CRAs, however, still consider that on the high side for utilization.

 

The 9% on one card rule that everybody talks about at MyFico is (IMHO)  for people who are really, really trying to fine-tune their credit scores or outwit the scoring systems.

 


According to FICO, the consumers who have the highest scores in the country (760 and above) have an aggregate utilization of 7%.


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