topic Re: balance? in Credit Cards

balance?

Anonymous — Sat, 02 Feb 2013 23:11:06 GMT

So question is?? Is it bad for a balance to report? Even though u ALWAYS pay in full?

Re: balance?

creditnocash — Sat, 02 Feb 2013 23:20:53 GMT

it is and it isnt.

if your not applying for anything then go for it.

any points you would lose from util and another card reporting will go back as soon as you pif and they report the card.

Re: balance?

Anonymous — Sat, 02 Feb 2013 23:23:49 GMT

U answered that question perfectly. Thats exactly wat im doing cuz im in the garden but wanted to know if i PIF after a few months or so(0% APR on cards) will my score bounce back

Re: balance?

Anonymous — Sat, 02 Feb 2013 23:24:38 GMT

Thank you CREDITNOCASH

Re: balance?

nicholasyud — Sun, 03 Feb 2013 02:42:15 GMT

@creditnocash wrote:
it is and it isnt.
if your not applying for anything then go for it.
any points you would lose from util and another card reporting will go back as soon as you pif and they report the card.

Someone please confirm this.

Let said both A & B had a same credit profile. Same credit score limit and etc.........

A always paid it in full and keep the balance utili under 9%.

B carry balance and make payment on time.

At 6 months mark, IF they both keep the Utili under 9%.

Will their score increase the same at the 6 months mark even thou they using different method to manage their credit card payment.????

Re: balance?

Shogun — Sun, 03 Feb 2013 02:49:57 GMT

Excellent question,, and I'm very curious to see some input.

Re: balance?

thom02099 — Sun, 03 Feb 2013 03:17:57 GMT

@nicholasyud wrote:
@creditnocash wrote:
it is and it isnt.
if your not applying for anything then go for it.
any points you would lose from util and another card reporting will go back as soon as you pif and they report the card.
Someone please confirm this.
Let said both A & B had a same credit profile. Same credit score limit and etc.........
A always paid it in full and keep the balance utili under 9%.
B carry balance and make payment on time.
At 6 months mark, IF they both keep the Utili under 9%.

Will their score increase the same at the 6 months mark even thou they using different method to manage their credit card payment.????

You said B carries a balance and makes payments on time versus A PIF and keeping util under 9%.

I think it depends on several factors, there's no hard and fast answer.

1 - If A is keeping Util under 9%, I think it depends what percentage rate, and for how long. This could vary.

2 - B carries a balance but makes payments on time. But what is the size of the balance? Couple hundred $$? Several thousand $$? That's going to be a factor also

3 - B may be making payments on time, but if only paying the minimum and not really reducing the overall balance, that may have an impact.

4 - You initially said that A and B had the same credit profile; same credit,same score, same limit, etc. But they don't. The fact that they pay differently is the diference in their profiles.So they are not identical. And that could impact scores.

And as creditnocash stated (correctly) if you're not applying for anything, then go for it! Scores are going to go up and down. The dings one takes are made up when the benefits of those dings are less of a factor and the benefit part kicks in.

Re: balance?

creditnocash — Sun, 03 Feb 2013 21:46:50 GMT

I haven't done a full experiment or anything, but in the months leading up too black friday/christmas i was playing with util and such.

i didnt let anything HUGE report but i didnt spend that much ethier.

since a credit score is a snapshot of your credit at THAT moment it can vary by person and its obviously ymmv.

i thought it was a sticked post but cant find it where people actually did play the game for up too 6 months.

i pif on all cards but 2 (one spending and one 0% best buy purchase) when i let one other report i lost anywhere from 3-6 points.

my cards were never maxed though. then i let a second report and another -5 points dropped. then the next month came around and i paid both in full etc..

i regained the points i lost and then some

(but also some accounts were over the six month mark and there were other contributing factors!)

like i said your credit score is a snap shot!

so as long as you pay on time, it shouldnt really matter until your applying for something

im just ocd and hate seeing my util so high(over 10%). i stress over the fact that i did not pif and ill be getting interest tacked on lol. ( i dont;let balances report, but you get the idea)

Re: balance?

creditnocash — Sun, 03 Feb 2013 21:49:39 GMT

another thing i didnt mention to the a and b thought.

i know on MY reports from annualcredit report i can see the balances/limits/min payments/actual payments/date paid vs due. on softs you cannot.

since each person is different no matter who they are its all relative info.

Re: balance?

LionLaw — Mon, 04 Feb 2013 20:11:56 GMT

I think the answer is that the utilization factor of your FICO score only considers present balances; it doesn't take into account your history of balances. Utilization of X% will give you a FICO score of Y; it doesn't matter if your utilization last month was 100% or 0%. Past balances are on your report, and might be a factor in manual reviews, but from my understanding of FICO scoring, past utilization simply isn't a part of the algorithms.

Re: balance?

Anonymous — Mon, 04 Feb 2013 20:20:13 GMT

@creditnocash I'm on my cell so I can't quote. So when we see the breakdown of payments and everything on our cr, the lender who does sp does not see all of that too?

Re: balance?

creditnocash — Tue, 05 Feb 2013 00:57:54 GMT

@Anonymous wrote:
@creditnocash I'm on my cell so I can't quote. So when we see the breakdown of payments and everything on our cr, the lender who does sp does not see all of that too?

if they soft pull they cannot see breakdown of payments

hardpull: anything goes

as i stated, i only saw a breakdown when i pulled the reports directly from the ca/

Re: balance?

nicholasyud — Tue, 05 Feb 2013 04:44:44 GMT

@thom02099 wrote:
@nicholasyud wrote:
@creditnocash wrote:
it is and it isnt.
if your not applying for anything then go for it.
any points you would lose from util and another card reporting will go back as soon as you pif and they report the card.
Someone please confirm this.
Let said both A & B had a same credit profile. Same credit score limit and etc.........
A always paid it in full and keep the balance utili under 9%.
B carry balance and make payment on time.
At 6 months mark, IF they both keep the Utili under 9%.

Will their score increase the same at the 6 months mark even thou they using different method to manage their credit card payment.????
You said B carries a balance and makes payments on time versus A PIF and keeping util under 9%.
I think it depends on several factors, there's no hard and fast answer.
1 - If A is keeping Util under 9%, I think it depends what percentage rate, and for how long ( 6 months). This could vary.
2 - B carries a balance but makes payments on time. But what is the size of the balance? Couple hundred $$? Several thousand $$? That's going to be a factor also
3 - B may be making payments on time, but if only paying the minimum and not really reducing the overall balance, that may have an impact.
4 - You initially said that A and B had the same credit profile; same credit,same score, same limit, etc. But they don't. The fact that they pay differently is the diference in their profiles.So they are not identical. And that could impact scores. ( At 6 months mark , will they credit file should be the same ??? )

And as creditnocash stated (correctly) if you're not applying for anything, then go for it! Scores are going to go up and down. The dings one takes are made up when the benefits of those dings are less of a factor and the benefit part kicks in.

As of my previos post:

Both A and B had the same identical credit file.

Example:

Husband and wife first came to america and app on their own card. ( maybe with 3 years credit history)

They start at X month but end at 6 months mark.

Using both different payment methods. ( they might have different payment and balance on those months but at 6 months mark they should be the same since they both keep util under 9% )

The resulf at 6 months mark should be the same ?

Do they score going to increase the same ???

Or the B person had better score since she keep her balance report under 9% all the time vs 6 months mark under 9% ?????

Re: balance?

Imua — Tue, 05 Feb 2013 05:32:41 GMT

@nicholasyud wrote:
@thom02099 wrote:
@nicholasyud wrote:
@creditnocash wrote:
it is and it isnt.
if your not applying for anything then go for it.
any points you would lose from util and another card reporting will go back as soon as you pif and they report the card.
Someone please confirm this.
Let said both A & B had a same credit profile. Same credit score limit and etc.........
A always paid it in full and keep the balance utili under 9%.
B carry balance and make payment on time.
At 6 months mark, IF they both keep the Utili under 9%.

Will their score increase the same at the 6 months mark even thou they using different method to manage their credit card payment.????
You said B carries a balance and makes payments on time versus A PIF and keeping util under 9%.
I think it depends on several factors, there's no hard and fast answer.
1 - If A is keeping Util under 9%, I think it depends what percentage rate, and for how long ( 6 months). This could vary.
2 - B carries a balance but makes payments on time. But what is the size of the balance? Couple hundred $$? Several thousand $$? That's going to be a factor also
3 - B may be making payments on time, but if only paying the minimum and not really reducing the overall balance, that may have an impact.
4 - You initially said that A and B had the same credit profile; same credit,same score, same limit, etc. But they don't. The fact that they pay differently is the diference in their profiles.So they are not identical. And that could impact scores. ( At 6 months mark , will they credit file should be the same ??? )

And as creditnocash stated (correctly) if you're not applying for anything, then go for it! Scores are going to go up and down. The dings one takes are made up when the benefits of those dings are less of a factor and the benefit part kicks in.
As of my previos post:
Both A and B had the same identical credit file.
Example:
Husband and wife first came to america and app on their own card. ( maybe with 3 years credit history)
They start at X month but end at 6 months mark.
Using both different payment methods. ( they might have different payment and balance on those months but at 6 months mark they should be the same since they both keep util under 9% )
The resulf at 6 months mark should be the same ?
Do they score going to increase the same ???
Or the B person had better score since she keep her balance report under 9% all the time vs 6 months mark under 9% ?????

FICO score is a snapshot in time, so if both had identical balances, CLs, util etc (not likely in real life, but in hypotheticalville it 'could' happen) at 6 months, both scores would be the same (in hypotheticalville)

sort of like a race, with a photofinish where both are truly tied at the (photo)finish line

if they both started out at exactly the same time out of the blocks, one might have run a steady pace throughout the race, while the other may have sprinted and then slowed down slightly so that during the race, one may have been ahead at some point (ie higher FICO) and the other may have been ahead at other points in time (higher FICO than the other), but at the finish, they cross the (photo)finish line at exactly the same moment.. (same FICOs).

Re: balance?

nicholasyud — Tue, 05 Feb 2013 05:45:18 GMT

FICO score is a snapshot in time, so if both had identical balances, CLs, util etc (not likely in real life, but in hypotheticalville it 'could' happen) at 6 months, both scores would be the same (in hypotheticalville)
sort of like a race, with a photofinish where both are truly tied at the (photo)finish line
if they both started out at exactly the same time out of the blocks, one might have run a steady pace throughout the race, while the other may have sprinted and then slowed down slightly so that during the race, one may have been ahead at some point (ie higher FICO) and the other may have been ahead at other points in time (higher FICO than the other), but at the finish, they cross the (photo)finish line at exactly the same moment.. (same FICOs).

Thank you

This is the answer i was looking for........I want to carried some balance in the couple of months(without paying interest thou) but in the mean time i dont wanna lose any points ...............Hope my score should start back on in a near future for my morgate appps....

Re: balance?

Imua — Tue, 05 Feb 2013 05:52:00 GMT

@nicholasyud wrote:

FICO score is a snapshot in time, so if both had identical balances, CLs, util etc (not likely in real life, but in hypotheticalville it 'could' happen) at 6 months, both scores would be the same (in hypotheticalville)
sort of like a race, with a photofinish where both are truly tied at the (photo)finish line
if they both started out at exactly the same time out of the blocks, one might have run a steady pace throughout the race, while the other may have sprinted and then slowed down slightly so that during the race, one may have been ahead at some point (ie higher FICO) and the other may have been ahead at other points in time (higher FICO than the other), but at the finish, they cross the (photo)finish line at exactly the same moment.. (same FICOs).
Thank you
This is the answer i was looking for........I want to carried some balance in the couple of months(without paying interest thou) but in the mean time i dont wanna lose any points ...............Hope my score should start back on in a near future for my morgate appps....

my scores dropped about 10-15 pts this summer when i had to carry a balance for 3 months (i.e. increase in utilization up to about 20%)

but my scores popped back up in Sept (util was back to 'normal' for me, ~5-6%)