Understanding FICO® Scoring

[AlwaysUp]

Hi

I have a credit limit of a $1000. I always pay my full balance by the due date. I try to keep my utilisation low (10%) but I spend around 5K a month using this card. I always use it all the time and transfer the money from my checking to the credit account by the end of the day to cover all the purchases I made.

Is that a good thing or no ? Should I stop making a lot of small payments?

Thanks

[pizzadude]

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AlwaysUp wrote:

Hi

I have a credit limit of a $1000. I always pay my full balance by the due date. I try to keep my utilisation low (10%) but I spend around 5K a month using this card. I always use it all the time and transfer the money from my checking to the credit account by the end of the day to cover all the purchases I made.

Is that a good thing or no ? Should I stop making a lot of small payments?

Thanks

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It's not necessarily bad, as long as your creditor is ok with you paying that frequently.   Who is the creditor ?

Do you have any other CCs open ?   FICO scoring likes to see two or three open revolving accounts.

[AlwaysUp]

It's WF. I'm gonna double my limit with a colleteral account because I was stupid and maxed out the card. Then I'm gonna try to get two others new CCs

[Revelate]

If your checking account and your credit card are from the same financial institution, it's almost certainly a non-issue.

Other than that I concur with Pizza: when your monthly expenses vastly outstrip your credit lines, it may be worth looking for additional cards.  Even if you have a mediocre score (which you may not from your description, just guessing here), your profile has charge card written all over it... and if you have a good score, there's dozens of lenders that would love to have your business.

Credit report wise the number of payments you make is irrelevant: what is reported to the bureaus (or at least from what I can see on an Experian report) is an monthly aggregate of all payments and a monthly aggregate of all charges.  Individual transactions aren't, so everyone else is blind to the number of payments except for the credit card issuer, and your checking account provider.

FICO-wise it's pretty much a non-issue, if it's even one at all frankly.

[AlwaysUp]

Yes I guess, I just maxed out the card and I have to double limit to fix that. I just got my social so my score is not available yet, they were reporting with my name before. I'm also trying to have a fraud collection from T-Mobile removed from my CR then I will try to apply for others cards!

Thank you for your help guys!