topic Re: Using my credit card to up my fico score. in Credit Cards

Using my credit card to up my fico score.

Anonymous — Tue, 19 Feb 2019 14:51:11 GMT

I very rarely use one of my two credit cards.
I am told if I do, it could help me.
I am getting an inspection done on my new home.
I was going to just give the inspector the 460 in cash.
What would happen if I just used my discover instead, and paid off the card tomorrow?
My credit limit is 2000.
Would this help upgrade my score a little?
I dropped 20 points due to all the pre approvals.
Getting close to closing and they ran my credit AGAIN.
The underwriter got the info. And he too ran it. My other two scores are up to around 711. My FICO 8 dropped.
What the heck.
That's the only thing that's changed on my report.

So should I use my credit card in place of cash and just pay it totally off tomorrow? I have the cash.
Any info would be great.
Meeting him at 4 EST

Thank you

Re: Using my credit card to up my fico score.

xaximus — Tue, 19 Feb 2019 14:57:33 GMT

I would advise using a card if there's no extra fees attached to it. Generally, I would advise to always use a card vs. paying cash. There are some situations where cash is better (if extra fees are applied because of using plastic vs. cash). Also, when using a card (and if no fees attached), on the Discover card, you get cash back so that's also nice.

Example - Discover IT CashBack
If within the first year of CB match - 2%.
460 * 2% = $9.2 in CB.
If after first year - 1%
460 * 1% = $4.6 in CB.

Whichever way it is - you still get CB. Always try to see when paying for anything - how you can utilize your current crop of cards to benefit you.

Re: Using my credit card to up my fico score.

AverageJoesCredit — Tue, 19 Feb 2019 14:58:51 GMT

Using your credit card in this case wont help or hurt your score in anyway. If you let it report, it might just because of the utilization. But in a one day case. No. If they accept Discover and no fees, you could use it to save you some cash and then just make your payment when due. Using your card usually shows lender that you are being responsible with card( of course paying on time without saying ) and may facilitate a future increase

Re: Using my credit card to up my fico score.

Anonymous — Tue, 19 Feb 2019 15:03:40 GMT

GOOD INFO.
I will only feel good though if I pay it off tomorrow or even today. Is that OK? I Cant believe what happened to me..
My vantage scores went up a whopping 32 points in the last month from doing everything right. Zero balances etc etc.. Nothing late.
I go to check my darn FICO 8 which hits once a month.. They DROPPED me 20 points.
I have had rapid increases with FICO 8, it's how I got to buy my own home here. I mean I have been on a mission. The fico going up and up.. The vantage not moving.. Now out of the blue bam I got stomped by the one I wanted to go up.
I know the credit pulls hurt but geez Louise come on... 20 points.
What gives here? Do you know?
PS can I pay that credit card off tomorrow if I use it in place of that cash then?
Thanks

Re: Using my credit card to up my fico score.

AverageJoesCredit — Tue, 19 Feb 2019 15:12:19 GMT

Dont worry about Vantage. Mine has been dropping crazily recently and though it stinks, and if you are like me like the cosmetic looksof them, Fico is more important.

You csn pay as soon as it you like but remember you need to wait for the charge to post, and Disco isnt instant. So you might hsve to wait a day or 2 or 3.

As to why your Fico dropped 20 points , not sure. If your file is thin any inquiry can have an affect. You could post the Fico question in General Credit for the score gurus to help. This topic actually might be better there for that purpose but your question about using the cc will get more exposure here. Good luck

Re: Using my credit card to up my fico score.

Anonymous — Tue, 19 Feb 2019 15:19:33 GMT

Awesome. I think it's all the credit inquiries. Plus I don't carry a balance on my credit cards. They hate that.
Ugh.. Thank you darlin

Re: Using my credit card to up my fico score.

xaximus — Tue, 19 Feb 2019 15:28:31 GMT

If there was a point drop on your FICO score - do you have all your balances paid off and everything is reporting zero? If so, that could explain the loss. I would post a charge and let it report, let the statement cut and then make a full payment when it's due. That should fix it if there's nothing else affecting your scores (baddies).

Re: Using my credit card to up my fico score.

Anonymous — Tue, 19 Feb 2019 15:43:20 GMT

Well you pretty much nailed it. They dislike zero balances. When I keep even a small balance they raise me up. Vantage stays the same. When I pay it to zero, fico hates it and vantage loves it. Only thing that did help.. My mortgage broker pulled credit report and loved that 32 point upswing. She said if you were at 749 we would of dropped you another full point. Ugh couldn't get there. Just couldn't get there

Re: Using my credit card to up my fico score.

AverageJoesCredit — Tue, 19 Feb 2019 16:12:30 GMT

Good call Xaximus. Its ok to let a balance report, not the end of the world. You csn still pay in full.

Re: Using my credit card to up my fico score.

pinkandgrey — Tue, 19 Feb 2019 16:20:47 GMT

Generally I use card for everything unless there are crazy fees. You get rewards and it’s safer than debit. Using credit and then paying it off quickly is about the ideal situation.

Re: Using my credit card to up my fico score.

Anonymous — Tue, 19 Feb 2019 16:25:46 GMT

OK I just followed everyone advise. I have no fees and actually they are saying they will be increasing my credit limit automatically next month as long as I pay this Bill on time, that's a no brainer. I didn't know discover gives you automatic credit line increases for good payment installments. Yay!
So last question
When should I pay this? I want to be sure it's going to possibly help me. That's the whole point. So.. Wait a week?
Thanks again everyone

Re: Using my credit card to up my fico score.

xaximus — Tue, 19 Feb 2019 18:38:12 GMT

Depending on when your statement cuts - I would pay it after.
Example - my statement goes from 3rd to the 2nd, and the due date is the 28th. Once you see the statement, you should see a minimum payment due - that's when you can pay it off completely.

Re: Using my credit card to up my fico score.

xaximus — Tue, 19 Feb 2019 18:39:08 GMT

@AverageJoesCredit wrote:
Good call Xaximus. Its ok to let a balance report, not the end of the world. You csn still pay in full.

Thanks AJC! Still waiting on my Zales trinket!

Re: Using my credit card to up my fico score.

AverageJoesCredit — Tue, 19 Feb 2019 20:28:51 GMT

Sorry for the delay @xaximus, apparently i was trying to impress the ladies who wanted a black card Unfortunately, mine wasnt Centurian enough so im still picking up my ego from the floor

Re: Using my credit card to up my fico score.

xaximus — Tue, 19 Feb 2019 20:54:50 GMT

@AverageJoesCredit wrote:
Sorry for the delay @xaximus, apparently i was trying to impress the ladies who wanted a black card Unfortunately, mine wasnt Centurian enough so im still picking up my ego from the floor

LOL! I actually laughed at that at work. @AverageJoesCredit - your Zales card is more valuable then the Centurian