topic Re: Balance or no balance? in Credit Cards

Balance or no balance?

Anonymous — Wed, 17 Apr 2019 08:57:12 GMT

Hi,

I currently have 9 credit cards. No late payments on any of them. All have 0 balances except for my card with the highest limit. I use all of the cards monthly and then pay them off before the closing date. Should I continue doing that or should I allow a small amout to report? I will start paying the Navy Fed down at least $250 per month by the next posting date. Any advice would be GREATLY apppreciated.

Citi (secured) $500 limit/0 balance

Discover (secured) $200 limit/0 balance

BOA (secured) $500 limit/0 balance

Capital One (secured) $500 limit/0 balance

Capital One (non secured) $500 limit/0 balance

Walmart $500 limit/0 balance

Lane Bryant $300 limit/0 balance

New York and Comp $250 limit/0 balance

Navy Federal $10K limit/$9,200 limit

Re: Balance or no balance?

Anonymous — Wed, 17 Apr 2019 08:59:03 GMT

Correction on the Navy Federal:

10k limit/$9,200 balance

Re: Balance or no balance?

HeavenOhio — Wed, 17 Apr 2019 09:26:12 GMT

The ideal for FICO is one small balance with the rest of your cards reporting zero. All cards at zero will result in a noticeable ding. Don't go out of your way to create balances for the sake of having balances other than the one to avoid the "all cards at zero" penalty.

That said, penalties for more than one balance aren't severe. You don't need to bend over backwards to report only a single balance unless an important application is coming up.

In the short term, the overriding factor affecting your score will be the maxed out Navy card. There isn't a lot that's likely to change unless your overall balances reach 11,779k, which would max your overall utilization.

Re: Balance or no balance?

AverageJoesCredit — Wed, 17 Apr 2019 12:40:09 GMT

No need to let any other report balance with the Navy reporting. I would put monthly reoccurring charges on your secured cards and try not spending any more eleswhere and concentrate on paying down Navy. If you dont get ahead on that balance now, things will spiral and your other lenders may not feel the need to unsecure your other cards. Just my 2 cents.

Re: Balance or no balance?

Anonymous — Wed, 17 Apr 2019 17:13:19 GMT

I would suggest that you pay down that balance on Navy Federal, to at least 28% utilization if you are unable to PIF. That will improve your score, which will look better to the other Lenders when it comes time for CLI and graduating those secured cards.

As others have said there are no benifits to artificially creating a Balance for no reason, especially high ones. If you haev to cary a balance that's unserstandable, some oif use do. But you should never carry more that 28% if possible.

It only takes $50 on one card each statement period, alternating every other month so that each card shows regular usage. So don't feel the need to go out of your way. to put spend on them, just act natural.

Re: Balance or no balance?

NRB525 — Thu, 18 Apr 2019 10:54:20 GMT

OP, how did you end up with a $9k balance owed on one card, when all other cards are starter limits?

What is the interest rate on that?

Re: Balance or no balance?

UpperNwGuy — Thu, 18 Apr 2019 11:38:13 GMT

I would stop using credit cards altogether until that NFCU balance is paid off completely. Use cash or debit cards. After that, use 2 or 3 credit cards each month, let the balances report, then immediately pay them off. The following month use a different 2 or 3 credit cards. No need to ever pay off a balance before the statement cuts.

Re: Balance or no balance?

Anonymous — Thu, 18 Apr 2019 11:46:22 GMT

Somewhat similar profile to what OP has.

Reported balance

MERRICK BANK$1,431/1700CL CRA report date 05/11 (85% util)

SYNCBPAYPALEXTRASMC$1016/8000CL; CRA Report date 05/15 1(12.5% util)

CAPITAL ONE BANK USA$206/2000CL CRA Report Date 05/18 (10% util)

CHASE CARD$0/500CL

KOHLS/CAPITAL ONE$0/300CL

SHELL/CBNA$0/600CL

OpenSky CAPITAL BANK$0/250CL
Suntrust Auto loan balance $6325. 2 yrs left $280/mo payment

AAoA: 4.5 yrs; oldest acct 6 years; EX: 695; EQ;720;TU:752; 1 medical collect on EX. Income 71k/yr; Inq EX/2;EQ/0;TU/2 (all 12+ mos old).
i like to apply for a cap1Venture or Chase Sapphire card within next 10 days. Given my utility and 3 cards with balances whats the right thing to do. Apply after paying down balances or apply with the given profile.