Understanding how to spend

[Creditrecipe]

Hey guys,

I am am on a journey to fix my credit, currently sit at a 560. I have been current on a high interest car payment for 14 months and decided to get some credit cards to help build my score. I got approved for a cap1 secured 200, credit one bank 300, fingerhut 400 and us bank secured 300. I have a few questions on how to properly manage these revolving accts.

1. Can I spend over the 9% MARK on my cards and pay the balance before the due date?

2. Will it show that I had a high balance at one point or does it just report the balance when the statement is due and will that hurt my chances of raising my scores?

3. Do I leave a 9% balance on the cards each month when the statement is cut and pay that in full?

[Dalanar]

1) You should keep track of the statement date more than the due date.  The balance on the statement day is what is reported to the bureaus.  Keep the util down to 9% BY the statement day, then pay in full thereafter by due date. 

2) it will show the statement balance (unless you have a charge card; that usually shows high balance)

3) The general wisdom is to have only one card report  a balance, not multiple.  I would keep that balance 9% of that reporting card. 

[Creditrecipe]

1) You should keep track of the statement date more than the due date.  The balance on the statement day is what is reported to the bureaus.  Keep the util down to 9% BY the statement day, then pay in full thereafter by due date. 

So if i have a high month for instance will that report for the life of the card or just that month?

3) The general wisdom is to have only one card report  a balance, not multiple.  I would keep that balance 9% of that reporting card. 

So out of my 4 total revolving accts I should only have one of those reporting a balance monthly?

[EW800]

I too am a big believer in keeping track of statement cut dates, pretty much more than anything else.  I certainly keep track of the due date of the one account that I allow to show a balance, however otherwise it is the statement date that I go by - ensuring that I have any balance paid before that date.  

There is one exception in my case.  Not sure if anyone else has run into this.  I have a US BANK Visa card that always reports the balance to the CRA's on the last day of the month, instead of the statement cut date (which I believe is the 11th of each month for me).  With that being the case, if I want to make sure that US BANK shows $0 balance, I always pay it by the 28th or so.  I am not sure if any other banks report at the end of the month instead of cut date.  

[Revelate]

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@EW800 wrote:

I too am a big believer in keeping track of statement cut dates, pretty much more than anything else.  I certainly keep track of the due date of the one account that I allow to show a balance, however otherwise it is the statement date that I go by - ensuring that I have any balance paid before that date.  

There is one exception in my case.  Not sure if anyone else has run into this.  I have a US BANK Visa card that always reports the balance to the CRA's on the last day of the month, instead of the statement cut date (which I believe is the 11th of each month for me).  With that being the case, if I want to make sure that US BANK shows $0 balance, I always pay it by the 28th or so.  I am not sure if any other banks report at the end of the month instead of cut date.  

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DCU does this too.