01-23-2013 08:09 AM
So I've been cleaning my credit and now have 2 new unsecured Credit Cards. One with a $300 Limit, the other with $500 limit. I've heard mostly its about utilization. 5-9% of utilation boosts your score. I've been told leave a balance on one, and keep the others on paid before statement or on 0% util, then rotate month to month.
First, is there any more info on this I should be aware of? Then, my main question is when exactly to pay? In order for it to be reported, it sounds like paying late then having interest added is how to get the CB's to report the utilization? I been told to wait until the statement is cut,then pay. To be honest, I'm still a bit confused on exactly how to do this. I think I need to know step-by-step, when to pay, in order for the utilization to be reported. Please excuse me as this is new to me and I certainly do not want to mess this up. Any advice is appreciated.
01-23-2013 10:58 AM
For a balance to report to the CRA, you just need the statement to cut with a balance on it. You can pay that balance once the statement does cut, and definetly pay at least the payment due amount by the due date on the statement.
Rotating two cards won't work as you will either have both reporting a balance or neither one reporting a balance for part of the month, unless they both cut statments at the same time. Just pick one and let the statement cut with a balance on it every month. You can use the other card just PIF before the statement cuts.
01-23-2013 02:12 PM
This is something I had to figure out myself just by looking at my cc acount and credit report every month. This is how I do mine:
Due Date - 18th
Statement date - 21st to 24th (changes each month)
Whatever you do, make sure you pay at least the minimum payment by the due date. Never pay late.
I get paid every 15th so I make a payment every 15th, but somethimes I make payments during the month if I charge a lot that month.
If I want to carry a balance to show uitl:
Due date - 18th
Payment made - 15th - for less than the total balance
Statement date - 23rd - will show a balance with interest on whatever portion I didn't pay
If you want to show zero balance, pay your entire balance on or before the due date.
I hope this helps.
01-23-2013 06:25 PM
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). 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.