FICO game..

[Anonymous]

Hey, I'm new to this board, and I am very interested in playing this "game" that you all mention.  So pls enlighten me about this paying your balance 4-5 days before the billing cycle ends? Is that different than paying a few days before your actual balance due? ANd what are other helpful tidbits of info that you guys can offer?? Thanks.

[Anonymous]

It's the system many people here use to keep their utilization down to a minimum, for maximum points. It is a major factor in the amounts owed section of the FICO scoring pie chart. It is 30% of your FICO score.

There are 3 major components:
1. Statement date
2. Statement due date
3. Date the account is reported to CRA

The trick is, is to pay well before the due date, to let your new balance update and post. Many people, myself included, make an interim payment before paying the final monthly payment. This keeps the utilization down to the 1%-10% max. benefit area. Plus I find that I pay no interest what so ever on the months purchases.

There. Is that as clear as 6 feet of muddy water? lol

[just_curious]

I'm new to the board, but I believe it is the general consensus around here that the CCCs report the balance as shown on the monthly statement and do not report interim figures.  Thus, if you make a payment before the statement closes to reduce the outstanding balance before the closing date, the util % is less (which FICO just loves loves loves ).

Then be sure to pay the remaining, smaller balance before the actual due date and you have gamed the system...using your available credit while sticking a stick in the eye of the FICO algorithm.

Is that what others have found???

[Anonymous]

Exactly just_curious It's the diplomatic way to achieve your goals.

And as my mother once told me: diplomacy is the art of letting someone have your way.

(I'm very diplomatic.lol)

[Anonymous]

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just_curious wrote:

I'm new to the board, but I believe it is the general consensus around here that the CCCs report the balance as shown on the monthly statement and do not report interim figures. 

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This is generally true, but just wanted to add one caveat.  Most CCCs report the statement balance, but there are some that do not.  HSBC, for example, reports the balance on the last weekday of the calendar month, regardless of when the statement cuts.  The only way to know for sure when your CCs report is to look at your CRs.

It may also be possible to call and ask, but I have found that for the most part CSRs don't know what I am talking about when I ask questions like this, and in some cases have given me flat out wrong information.  Target, for example, told me they would report on the last day of the month, not the statement balance.  I almost left my $130 balance / $200 CL when the statement cut, but thought better of it and went ahead and paid it down to $5.  It was a good thing I did because when TNB showed up on my report for the first time, it turned out they report the statement balance after all.  Nice.

Chase told me they only report quarterly, and as far as the actual point in the cycle when they report, I was told "Nobody can tell you that information."

Whatever.  I just waited a couple of months and looked at my reports.  Turns out they report monthly on the statement date just like almost everyone else.

[Anonymous]

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cheddar wrote:

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just_curious wrote:

I'm new to the board, but I believe it is the general consensus around here that the CCCs report the balance as shown on the monthly statement and do not report interim figures. 

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... Most CCCs report the statement balance, but there are some that do not.  HSBC, for example, reports the balance on the last weekday of the calendar month, regardless of when the statement cuts.  The only way to know for sure when your CCs report is to look at your CRs.

It may also be possible to call and ask, but I have found that for the most part CSRs don't know what I am talking about when I ask questions like this, and in some cases have given me flat out wrong information.  Target, for example, told me they would report on the last day of the month, not the statement balance.  I almost left my $130 balance / $200 CL when the statement cut, but thought better of it and went ahead and paid it down to $5.  It was a good thing I did because when TNB showed up on my report for the first time, it turned out they report the statement balance after all.  Nice.

Chase told me they only report quarterly, and as far as the actual point in the cycle when they report, I was told "Nobody can tell you that information."

Whatever.  I just waited a couple of months and looked at my reports.  Turns out they report monthly on the statement date just like almost everyone else.

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True.

Also keep in mind that FICO does not track historical utilization.  Historical payment record -- yes, but historical utilization, no.

If I apply for a mortgage a year from now, my util at the time those CRs are pulled is all that matters.  FICO doesn't care if I kept my util at 9% for the entire previous year or maxed out the cards every month.  Just like you can be obsessive about your scores and monitor them every day, but it doesn't matter whether they've gone up or down -- it only matters what your scores are on the fateful day the lender pulls them.

Now, don't start arguing with me ... I know it's counterintuitive ... hey, I didn't write the formula ... but you gotta understand how it works to play the game of "FICO ... or No FICO". 

[haulingthescoreup]

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@Anonymous wrote:

If I apply for a mortgage a year from now, my util at the time those CRs are pulled is all that matters. FICO doesn't care if I kept my util at 9% for the entire previous year or maxed out the cards every month. Just like you can be obsessive about your scores and monitor them every day, but it doesn't matter whether they've gone up or down -- it only matters what your scores are on the fateful day the lender pulls them.

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Agree!

It's fun for approximately 2 1/2 weeks to work the percentages, and then it gets to be a pain. I do still pay around 5 days before my CC's post, but I'm done trying to get a specific percentage to report, unless and until I'm getting ready to apply for something. If you get used to seeing the higher scores from this, but one month you have to have 60% on one card, it's kind of a kick in the gut to see the score dip.

If you are new to figuring out how all this works, it is really instructive to do this for one month anyway, both for practice and to get a feel for the impact on your scores. Things to keep in mind:

--your scores are higher if some cards report a balance than if they're all at $0. Go figure.
--you can start this at any point in the month
--only let half or fewer of your cards report; have the rest at $0
--those that report, let them show under 10%, or even better under 5%
--don't worry about installments (car loans, mortgages, etc.)--they're not part of this calculation
--if you have a home equity line of credit, it looks like TU includes it in revolving credit, but the other two CRA's don't. You might have a big score discrepancy there.

So if you are not stalking more credit right away, you might want to do this for one 30-day cycle. After that, just keep everything at $0 but one or maybe two cards. Don't let your debt creep back up! Have enough in savings that if you do need to do a quick paydown, you're able to.

When you are ready to look for credit again, I would start this "game" 6-8 weeks ahead of time, to give everything time to post, and allow for that one stubborn account to finally get with the program. (There's always one! )

[Anonymous]

I am getting ready to apply for a mortgage, that's the reason for trying to increase my fico and get a good loan.  I need at least a 620!

I am working with a loan broker who can help me. But she says she will need to pull my report again and I do not want to sacrifice any FICO points!  Also, if I work with the lender that the builders are using I get more incentives ~10K! So I am trying to do this on my own. 

Thanks again everyone!!!

PS/

[Anonymous]

P/S Should I pull my reports from all three bureaus to check discrepancies and errors and also to dispute items?  Is it better to dispute online or written, and do I HAVE to pull my report in order to dispute?? For some reason the 3-in-one the mortgage company used has old accounts on there that weren't on my myfico.com report!

[Anonymous]

You nailed it-
I don't even have to post anymore -

BTW- Waiting til next week when I post 1% UTL balances under 5% on 3 of 9 cards - waiting for WAMU to update everything else is set and posted.

All of these cards have activity- All of these balances have posted this month. I goofed on Seamiles- wanted to leave a balance on AMEX.

This is FICO fine tuning to see where you are-

WAMU Plat Visa 150 3000 5.0%
Capital One Visa 0 4000 0.0%
Capital One MC 13 1000 1.3%
Barclays Seamiles 6 3000 0.2%
CCCU Visa 0 5000 0.0%
Amex 0 1000 0.0%
Household Visa 0 400 0.0%
Household MC 0 400 0.0%
Barclays Plat MC 0 2000 0.0%

218 19800 0.9%

Kay's (1K/5K) and the HELOC (6K/50K) not reported yet.
If I am gonna hit 700 before the end of the year - let's see it.

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@haulingthescoreup wrote:

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@Anonymous wrote:

If I apply for a mortgage a year from now, my util at the time those CRs are pulled is all that matters. FICO doesn't care if I kept my util at 9% for the entire previous year or maxed out the cards every month. Just like you can be obsessive about your scores and monitor them every day, but it doesn't matter whether they've gone up or down -- it only matters what your scores are on the fateful day the lender pulls them.

---

Agree!

It's fun for approximately 2 1/2 weeks to work the percentages, and then it gets to be a pain. I do still pay around 5 days before my CC's post, but I'm done trying to get a specific percentage to report, unless and until I'm getting ready to apply for something. If you get used to seeing the higher scores from this, but one month you have to have 60% on one card, it's kind of a kick in the gut to see the score dip.

If you are new to figuring out how all this works, it is really instructive to do this for one month anyway, both for practice and to get a feel for the impact on your scores. Things to keep in mind:

--your scores are higher if some cards report a balance than if they're all at $0. Go figure.
--you can start this at any point in the month
--only let half or fewer of your cards report; have the rest at $0
--those that report, let them show under 10%, or even better under 5%
--don't worry about installments (car loans, mortgages, etc.)--they're not part of this calculation
--if you have a home equity line of credit, it looks like TU includes it in revolving credit, but the other two CRA's don't. You might have a big score discrepancy there.

So if you are not stalking more credit right away, you might want to do this for one 30-day cycle. After that, just keep everything at $0 but one or maybe two cards. Don't let your debt creep back up! Have enough in savings that if you do need to do a quick paydown, you're able to.

When you are ready to look for credit again, I would start this "game" 6-8 weeks ahead of time, to give everything time to post, and allow for that one stubborn account to finally get with the program. (There's always one! )

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