Re: Can Somebody Nice Explain "Don't Carry a Balance?"
10-13-2012 08:14 PM
I don't agree with never letting a card report a balance. The fact is that your highest balance is reported. I have allowed a 4k balance to report on chase. A 4890 balance has reported on discover and a 8625 balance has reported on nfcu.
I also paid in full immediately after statement cut.
I personally think that manual reviewers and computers give me bonus points for actually using my cards.
For the most part I don't carry balances but if one months spend is rather high on a card I will let it report just to increase my "high balance"
Highest Balance is the largest balance that's been on the card at any time. If you charged $5k, pay it the next day, and then the statement cuts showing a $0 balance, that $5k high balance will still be reported as your Highest Balance. You don't need to let the statement cut for that to show. And no, you get no bonus points for that.
That varies by lender unfortunately.... for Amex, they do not adjust your "high balance" without letting the statement show the balance. I beg to differ on gettng no bonus points for that... Discover always seems to give me CLIs after I've let a large balance report and then immediately pay it off before the next statement. This has happened 5 times.
Amex charge cards (like your Zync) and other NPSL cards (like Visa Signature) are different because they don't report limits to begin with....just High Balances. That is what gets used as a Credit Limit on your report for utilization purposes. So yeah, I guess you get "bonus points" in a sense for these cards, but not in the way that you are thinking. It's not because your showing use, it's because those cards need something to use as your credit limit because they don't report one to begin with.
Discover will auto-CLI people when they show heavy use of the card. That still doesn't mean you need to let it report high balances. I've been auto-CLI'd be them multiple times as well. My Highest Balance on my Disc More is just under $1k, an amount that never hit any statement because I pay off most balances before statements cut. They've auto-CLI'd me up to $10k at this point.