topic Re: Using CC for monthly bills in Understanding FICO® Scoring

Using CC for monthly bills

Anonymous — Sun, 01 Jul 2007 19:27:48 GMT

For a while now I've been putting my cell phone and internet on my CC and then at the end of the month pay it off. I've heard that a $0 balance isn't really very good. I've also heard that, while I pay it off, ever credit report might show that I have the $150 dollars on that card every month as I may payment to a $0 balance may be after my initial snapshot of my credit. One, did anything I just type make sense? HAHA And two, if it did make sense, is this good or bad for credit? Thanks for your help! -A

Re: Using CC for monthly bills

fused — Sun, 01 Jul 2007 20:12:55 GMT

ajg wrote:
For a while now I've been putting my cell phone and internet on my CC and then at the end of the month pay it off. I've heard that a $0 balance isn't really very good. I've also heard that, while I pay it off, ever credit report might show that I have the $150 dollars on that card every month as I may payment to a $0 balance may be after my initial snapshot of my credit. One, did anything I just type make sense? HAHA And two, if it did make sense, is this good or bad for credit? Thanks for your help! -A

If you want to save money and get max FICO points with the utilization game try this. Pay your CC online before the statement date. This way you should not pay a finance charge and your CC can report util between 1-9%. Here's an example:

Card with a 2K CL and a balance of 250 and a statement date coming in two weeks reporting online at your CCC's website. If you don't pay anything before the statemnet date you will pay finance charges and your util% will be 12.5. How to avoid this, pay $75 before the statement and make sure it posts on your account. If properly done you avoid a finance charge and have your CC reporting a util% of 8.75, nice! Easy as pie!

Re: Using CC for monthly bills

Anonymous — Mon, 02 Jul 2007 02:26:27 GMT

http://fico.lithium.com/fico/board/message?board.id=generalcredit&thread.id=18387