topic Re: Should I pay CC in Understanding FICO® Scoring

Should I pay CC

Anonymous — Sun, 22 Jul 2007 18:58:25 GMT

every month. I use my cards every month and pay every month. Does this help my credit score? Should I carry a balance (given I have 0 APR)?

Re: Should I pay CC

Anonymous — Sun, 22 Jul 2007 19:24:27 GMT

Oh my!! Most definitely pay every month ON TIME!!! This will definitely help your score...Keep your utilization between 1-9%. But most def...If you have a balance you MUST pay every month by the due date...

Re: Should I pay CC

Anonymous — Mon, 23 Jul 2007 04:06:00 GMT

Does using my CC for my bills, gas, etc, every month then paying it off every month actually help my fico score or not?

Re: Should I pay CC

Anonymous — Mon, 23 Jul 2007 04:34:49 GMT

2697 wrote:
Does using my CC for my bills, gas, etc, every month then paying it off every month actually help my fico score or not?

Doesn't matter what you use your card for... If you are looking for the best way to influence your FICO, consider leaving a floating balance of 5% of you CL to carry as a balance. You may want to check your credit reports to find out whether or not you have actually been paying early enough for the CCCs to report a $0 balance. Your statement and your CR may not reflect the same info... In fact frequently they do not...

So the answer to your question is probably not. BUT if you use your payment methods to carry a small balance month over month you can help your score.

If you are using a good rewards card to pay for your utilities, groceries, gas, etc. then you're probably helping yourself out. So DON'T change how you use your card as a result of my advice... Just adjust how you pay and you'll get the best of both worlds.

Good Luck.

Rob

Re: Should I pay CC

Tuscani — Mon, 23 Jul 2007 14:43:37 GMT

Welcome.. Please read the Scoring 101 thread:

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=2654

Message Edited by Tuscani on 07-23-2007 09:43 AM

Re: Should I pay CC

Anonymous — Mon, 23 Jul 2007 16:48:32 GMT

Yes, but this said "floating balance" is going to cost me $ on the cards I do have an APR% on. So do you just recommend using my Rewards cards every month (not going anywhere near 10% of limit) and pay them off every month?

Re: Should I pay CC

Anonymous — Tue, 24 Jul 2007 14:27:52 GMT

2697 wrote:
Yes, but this said "floating balance" is going to cost me $ on the cards I do have an APR% on. So do you just recommend using my Rewards cards every month (not going anywhere near 10% of limit) and pay them off every month?

You can use all of your limit with the rewards card. And if you pay before the statement date, you will likely have paid no APR (depending on card user terms.) and still have $0 bal on your CRs.

When I suggested you carry a small balance month over month I was referring to the highest possible FICO imact strategy. Which is simply to keep your balances between 1% - 10%. This is NOT financial best practice advice... It is merely FICO best practice advice. Unfortunately they don't always match up.

Take Care.

Rob

Re: Should I pay CC

MidnightVoice — Tue, 24 Jul 2007 14:35:07 GMT

FICO_Focused wrote:

You can use all of your limit with the rewards card. And if you pay before the statement date, you will likely have paid no APR (depending on card user terms.) and still have $0 bal on your CRs.

When I suggested you carry a small balance month over month I was referring to the highest possible FICO imact strategy. Which is simply to keep your balances between 1% - 10%. This is NOT financial best practice advice... It is merely FICO best practice advice. Unfortunately they don't always match up.

Take Care.

Rob

However, if your CC reports the statement balance, you can just ensure that the statement balance will be 1-9%, then PIF to avoid finance charges

Remember

trinigal wrote:

1-9, on time, all the time!!!