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Established Member
unrlmth
Posts: 20
Registered: ‎05-18-2014
0

Understanding Payment History for CCs

I want to try and build as much of a payment history as possible on all of my cards.  I have a few questions as how to best do this.

 

It seems like the consensous is that you should let a balance of 1-9% report one one credit card for best util score.

 

Now this leads to 3 different possibilities for payments.

 

1. Let balance post, pay card.

2. Use card and pay before statement cuts.

3. Don't use card, 0 statement balance.

 

Will all of these count towards your payment history? Just the first 2?

Valued Contributor
my-own-fico
Posts: 1,237
Registered: ‎01-05-2010
0

Re: Understanding Payment History for CCs

I don't think anyone cares as long as you're not late or maxed out!

 

The lost luggage office’s trained professional, “Has your plane arrived yet?”
Established Contributor
bettercreditguy1
Posts: 758
Registered: ‎02-11-2012
0

Re: Understanding Payment History for CCs

An unused credit card does not show an active payment history. It will look better if you charge that candy bar or what ever each month and pay it off.

Starting scores 01/02/2012 EQ 707(Fico) TU 733(Fico) EXP 735 (FAKO)
Updated scores 06/01/2014 EQ 797(Fico) TU 768(Fico) EXP 769 (Fico), EQ 849 (Next Gen 5/27/14 Penfed)


Remember the Three P's: Pay early in Full, Pay on Time, Patience
Established Member
unrlmth
Posts: 20
Registered: ‎05-18-2014
0

Re: Understanding Payment History for CCs


bettercreditguy1 wrote:

An unused credit card does not show an active payment history. It will look better if you charge that candy bar or what ever each month and pay it off.


 

What about paying the balance before the statement cuts? Will that count towards my payment history?

 

I care more about building a payment history than my utilization at this point.

Established Contributor
EW800
Posts: 707
Registered: ‎06-01-2008
0

Re: Understanding Payment History for CCs


bettercreditguy1 wrote:

An unused credit card does not show an active payment history. It will look better if you charge that candy bar or what ever each month and pay it off.


This is an interesting topic to me.  I have been through a major rebuild the last two years.  I have brought my scores up a lot, however now I am thinking I could have done better.  Through much of this rebuild, I had a couple of credit cards at $0 - basically parked them and did not use them for many, many months.  I guess I could have helped myself a bit if I used them and paid them, therefore showing a few more on-time perfect payments?  Either way, I have so pleased to be about 700 area vs. the lower 500's two years ago!  :smileyhappy:

 

 

Oct 2012: All Scores in the 520 range, during a foreclosure, CC Settlement and high UTIL. Very ugly days...
Oct 2014: EXP08: 717; EQ08: 728; TU08: 731; EQ04: 691
GOAL: FICO 08 Models 725+; FICO 04 Model to 700+

In My Wallet -- Discover $11.7K; Cap1 $8.4K; Amex $9.9K; Barclay $7K; Citibank $4.9K; US Bank $4K; Dell $5K; Care Credit $6.5K
My UTIL: Less than 1%
Established Contributor
GFer
Posts: 992
Registered: ‎04-01-2008
0

Re: Understanding Payment History for CCs

There's no history if there's no use.

 

This is why we get a temporary 'ding' when using a dormant card. Not to mention; I've had  a couple of cc company's actually force a hp to use a cc after being sock-drawered. I've found for me, that if I use mine every three months or so, I have no issues. YMMV



1/28/14 EQ 817, (6/30/14)EX 821, TU 817 on 6/13/2014

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Valued Contributor
user5387
Posts: 1,794
Registered: ‎07-01-2010
0

Re: Understanding Payment History for CCs


unrlmth wrote:

I want to try and build as much of a payment history as possible on all of my cards.  I have a few questions as how to best do this.

 

It seems like the consensous is that you should let a balance of 1-9% report one one credit card for best util score.

 

Now this leads to 3 different possibilities for payments.

 

1. Let balance post, pay card.

2. Use card and pay before statement cuts.

3. Don't use card, 0 statement balance.

 

Will all of these count towards your payment history? Just the first 2?


I would suggest keeping the card active.

 

Whether you pay the balance before the statement date or not is typically driven by whether you wish to optimize reported utilization.

 


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