Credit Card Center Advertiser Disclosure

New Contributor
Posts: 69
Registered: ‎03-07-2007
0 Kudos

My utilization strategy

I have 2 low limit credit cards ($1300 total) that have been maxed out for a while. But, I have a plan. I can't afford to just pay them off. However, this month before the due date, I am going to pay them off anyway. Then, after the accounts cycle (and the balances reported to the bureaus) about a week later, I will pay my bills and buy gas and groceries with my credit cards.
So my question is, will this work? For utilization, do the bureaus go by average daily balance, or the balance when the account cycled? If a person maxes out their credit cards at some point during the month but then pays it down 90% before the due date should have a utilization of 10%, right?
Established Member
Posts: 21
Registered: ‎03-15-2007
0 Kudos

What gets reported to the CRAs is the exact balance on yo...

[ Edited ]
What gets reported to the CRAs is the exact balance on your account at the time it is reported.

Let's say you have a zero balance between April 1 and 29. A $1000 charge appears on April 30th, but you pay it off in full the following day. If the creditor reports to the CRAs on the 30th, they will report the entire $1000 balance. If they report on the 29th or May 1st, they will report the zero balance.

Call them and find out what day they report your account, most of them will. If they don't, the exact day shows up on your TU report if you pull it. Use that as a target date to make sure your accounts are as low as possible within 3-4 days either side of that date.

Message Edited by Nuggy on 04-08-2007 09:45 PM

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.