topic Leaving A Balance Does Work!!! in Credit Cards

Leaving A Balance Does Work!!!

Anonymous — Sat, 01 Mar 2008 18:05:34 GMT

My credit score has been dormant for a while so I got bored and decided to play with it and try new things. I used to pay everything off in full before the balance reported so I always had $0 balances on my credit report but it wasnt seeming to benefit me. Last month I let a $12 balance post on my secured BOA card which had a $500 CL. I just recently got an update from scorewatch that said my score went up 7 points from 635 to 642 and the only change was a balance reporting. I do have a questiong though. If I let all of my cards report a small balance, I have 2 more, will I get a small increase with each balance posted?

Re: Leaving A Balance Does Work!!!

Anonymous — Sat, 01 Mar 2008 18:30:56 GMT

Congrats for the score jump! WTG!

The conventional wisdom here is(and I'm trying this to), is to pif half of all the cc's you have, and let the other half report 1%-9% utils.

Worth a try, yes?

Re: Leaving A Balance Does Work!!!

Anonymous — Sat, 01 Mar 2008 18:42:37 GMT

I agree.

Re: Leaving A Balance Does Work!!!

Schoolbuskid — Sat, 01 Mar 2008 18:49:13 GMT

Would it be wise to let my credit card report a balance for the first time? i just go this credit card through my credit union in February! My bill is due Mar 21 and im thinking about letting a balance report so that by the next due date Apr 21 i will let a $0 balance report in hopes of a score increase!

But then again i dont think i should have a balance the first time!

Re: Leaving A Balance Does Work!!!

Anonymous — Sat, 01 Mar 2008 18:56:33 GMT

@Schoolbuskid wrote:
Would it be wise to let my credit card report a balance for the first time? i just go this credit card through my credit union in February! My bill is due Mar 21 and im thinking about letting a balance report so that by the next due date Apr 21 i will let a $0 balance report in hopes of a score increase!
But then again i dont think i should have a balance the first time!

Yes! I DEFINITELY think that on a brand spanking new cc that you should let a balance post in the first reporting period, if at all possible.

Some cards you don't have a choice. Some cc's, like Discover, IMMEDIATELY report a few days after approval, and before you even get the cc, a $0 balance.

I always wait until I get my first statement to do anything about paying it. For several reasons. I want to make absolutely, positively for certain sure that when I go into my bank's online bill pay file maintenance that I enter the correct name, and address, telephone # and cc #. But that's just me.

Re: Leaving A Balance Does Work!!!

Anonymous — Sat, 01 Mar 2008 20:26:45 GMT

Thank you, that's definately worth a try!! We'll see what happens.....

Re: Leaving A Balance Does Work!!!

ngerasimatos — Sat, 01 Mar 2008 20:29:32 GMT

Keep us posted.

Re: Leaving A Balance Does Work!!!

Not_the_Point — Sun, 02 Mar 2008 00:10:46 GMT

I think it all depends on who issued the CC. Here is my experience:

Six months ago I got my first credit card ever, with WaMu, and have PIF every month. When I look at my profile on the WaMu Online Credit Card page, my PIF is reflected and noted there as "payed more than the minimum payment" for each of those months.

My Equifax score is 735 now after only a 6 month credit history, so WaMu at least will give you some kudos for PIF every month. From what I have read on these forums there are other carriers who will even punish you for PIF every month.

If your credit card has some kind of online management tools, use them.

Re: Leaving A Balance Does Work!!!

Anonymous — Sun, 02 Mar 2008 02:31:36 GMT

you should leave some balance on 1 or 2 cards. I once paid everything off and my score went down. If you look at the plus and minus on your cr it will give you plus for using your credit.

Re: Leaving A Balance Does Work!!!

Anonymous — Sun, 02 Mar 2008 03:07:29 GMT

InSearchOf720 wrote:
My credit score has been dormant for a while so I got bored and decided to play with it and try new things. I used to pay everything off in full before the balance reported so I always had $0 balances on my credit report but it wasnt seeming to benefit me. Last month I let a $12 balance post on my secured BOA card which had a $500 CL. I just recently got an update from scorewatch that said my score went up 7 points from 635 to 642 and the only change was a balance reporting. I do have a questiong though. If I let all of my cards report a small balance, I have 2 more, will I get a small increase with each balance posted?

My score went down 7 pts, same card BOA secured..$11 posted a balance, said my max allowed is $5 or it will hurt my score...what is that all about!!! Maybe because my card is new? Just got it a few weeks ago...

Re: Leaving A Balance Does Work!!!

Anonymous — Sun, 02 Mar 2008 03:36:47 GMT

For me it was 20 points-

casinoannie97 wrote:

you should leave some balance on 1 or 2 cards. I once paid everything off and my score went down. If you look at the plus and minus on your cr it will give you plus for using your credit.

Re: Leaving A Balance Does Work!!!

haulingthescoreup — Sun, 02 Mar 2008 03:46:20 GMT

I'm planning on using my new cards, but not letting a balance report, except for the BofA card, which has a whopping big BT on it, if they ever post.

After everything gets up and running, I might let another one report, just to see what happens. Otherwise, the BofA will be the only CC out of 9 that reports. Unless DH gets frisky with the Discover, which is his card after all, lol.