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Senior Contributor
Posts: 4,831
Registered: ‎04-20-2007
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Re: Is paying off the balance on my cc every month good or bad?



ilovepizza wrote:
Pay off in full. Activity is the same as balance. They both force an update reflecting payment. PIF looks better. A personal opinion, 0% will give you a higher score than 10% UTL. There is a sweet spot for a few more points somewhere on the lower end of UTL.


I think it lays somewhere between 0-2% maybe under 1%. This business of leaving 10% balances is strange to me. I hope these guys are paying before they incur interest.
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Registered: ‎03-12-2007
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Re: Is paying off the balance on my cc every month good or bad?



masdeocho wrote:
Jbunny -- no impact at all on your future FICO score.  There is no historical utilization factor.  How much of your CL you use today does not matter when you pull your score in one year.  That's why I said this is fine tuning -- the utilization only matters at the point in time when your score really matters.  Otherwise it's just academic.


Exactly!
Credit Profile -
FICO 08 Scores (03-26-2015): EQ 814, EX 817, TU 822
All three scores were 850. Lost points for not having an open installment TL. So, BE WARNED!!!!!
Credit History: 26 years ~ AAoA: 13 years ~ Util: 1% ~ Inqs: EX 1, EQ 1

Credit Cards: Amex BCP ~ Amex Clear ~ Amex Platinum ~ Barclay Ring Mastercard ~ Chase Freedom Visa ~ CITI Dividend Platinum World Mastercard ~ FIA Fidelity Investment Platinum Visa ~ First Hawaiian Bank Gold Visa
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Posts: 3,071
Registered: ‎05-17-2007
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Re: Is paying off the balance on my cc every month good or bad?



fused111 wrote:


masdeocho wrote:
Jbunny -- no impact at all on your future FICO score. There is no historical utilization factor. How much of your CL you use today does not matter when you pull your score in one year. That's why I said this is fine tuning -- the utilization only matters at the point in time when your score really matters. Otherwise it's just academic.


Exactly!



Yep. :smileyhappy: I agree too.
If we never set higher goals we would never get as far.
sol, credit 101, acr, abbreviations, calc
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Posts: 21
Registered: ‎09-15-2007
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Re: Is paying off the balance on my cc every month good or bad?

so if you ask the ccc, they will know & tell you what day they update your bal & tell tu, ex and eq?
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Registered: ‎07-25-2007
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Re: Is paying off the balance on my cc every month good or bad?



masdeocho wrote:
Pay it all off. The only time you want 1 - 9% utilization is when you are actually applying for credit. If you are getting a mortgage next year, it doesn't matter that you have a zero balance reported now. Better to be debt adverse and not pay extra $ to the banks.





So someone who maxes out their card for 11 months, then brings utilization down to 10% will have the same score as someone who maintained 10% utilization for all 12 consecutive months?

That doesn't make sense.

Starting Score: EQ 773, TU 766
Current Score: EX 794, EQ 787, TU 776
Goal Score: 800


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Re: Is paying off the balance on my cc every month good or bad?



andyaycw wrote:


masdeocho wrote:
Pay it all off. The only time you want 1 - 9% utilization is when you are actually applying for credit. If you are getting a mortgage next year, it doesn't matter that you have a zero balance reported now. Better to be debt adverse and not pay extra $ to the banks.



So someone who maxes out their card for 11 months, then brings utilization down to 10% will have the same score as someone who maintained 10% utilization for all 12 consecutive months?

That doesn't make sense.

Correct.
 
It may seem counterintuitive, but hey, it's FICO.
 
-----------------
Bartender, bring another round of FICOtinis please!

9.4.2011: TU 805. EQ 815.
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