topic Re: New credit w/5 CC in General Credit Topics

New credit w/5 CC

RobynJ — Wed, 16 Mar 2022 21:22:58 GMT

I have posted my journey on another post but have a question about the new CC I recently acquired. I have a 0 score still (started building back in February) so I have another 4 months until a score will generate I am to understand. My question is should I let a small balance report on each card before PIF or should all but one carry a balance before PIF? I have seen different ideas on here to which is a better option. Please advise.

Re: New credit w/5 CC

Remedios — Wed, 16 Mar 2022 21:33:49 GMT

It's not relevant from scoring perspective since score won't be generated until later.

Balances are still reported, regardless of having a score.

AZEO might gain you a few points, but AZEO is pointless and time consuming. You're already worried about balances one month into your journey, so imagine how you will feel when one additional card reports and you start feeling like sky is about to fall, you start thinking your cards are about to get closed for doing what 99.9% of population does...wait for statement then pay, and you will feel that way.

Unfortunately, there isn't any way to stop AZEO propaganda, so here we are, worried about score when there even isn't one.

Re: New credit w/5 CC

RobynJ — Wed, 16 Mar 2022 21:48:58 GMT

@Remedios
I just want to make sure that I do this right is all. The score will come I now I am more thinking about how the CCC look at it for CLI in the future. So say I pay them prior to statement does that make them shy away from me or does it look better to them if I leave a balance until after statement and pay. Do it with all or less? Man I messed my credit up terribly back in 08 and have a clean slate so I just want to pursue the righteous path is all. Thanks

Re: New credit w/5 CC

coldfusion — Wed, 16 Mar 2022 21:56:15 GMT

AZEO is really only useful if someone is clawing and scratching to try to squeeze out every last possible FICO point to get over some relevant threshold like a mininum FICO score needed to get the lowest possible rate on a mortgage where organically they are just a few points shy.

If you aren't in that senario just pay off each of your balances in full once they report each month and let things take care of themselves naturally. You'll save yourself a lot of angst and establish a track record of demonstrating to the wider audience that you actually use your credit while paying it off responsibly.

Re: New credit w/5 CC

Remedios — Wed, 16 Mar 2022 22:01:03 GMT

Righteous path (according to me) is use cards, wait for statement, pay the bill..

They won't shy away from you if you pay before the statement, most lenders don't complain about when they get the money as long as they get the money.

Using cards and paying them is what eventually might help with increases, so it's really about paying them, not about when you pay them (as in before or after statement is ready).

I personally think you should do whatever you're comfortable with and whatever leads to less stress for you.

Starting over, rebuilding etc is stressful and hard enough without self imposed complications, so make yourself happy first and manage your money in a way that suits you the best.

If that's paying before statement, go for it.

Re: New credit w/5 CC

RobynJ — Wed, 16 Mar 2022 22:08:46 GMT

@Remedios @coldfusion

Thank you both. I have been doing exactly that, stressing on not spending more then 28% of CL and making sure it was paid prior to statement day (it's a pain in the azz with pending transactions and all). Well I have been using them all the time and making 10+ payments a month to assure I am under the util I always read about in here.

Re: New credit w/5 CC

Jnbmom — Wed, 16 Mar 2022 22:54:59 GMT

I agree with the others unless you are trying to squeeze out a few points for a mortgage . AZEO is not worth it , it's time consuming and people stress way beyond what they need to . Use your cards pay when statement cuts, rinse and repeat . Making 10 payments a month why, you do not need to that that's way too stressful .

Re: New credit w/5 CC

RobynJ — Wed, 16 Mar 2022 22:58:52 GMT

@Jnbmom

I do not have high CL so if I want to use them frequently I don't have a choice in the matter. I could just use my debit but I really want to show responsible use and IMHO to do that I have to use them often in the beginning. Your thoughts?

Re: New credit w/5 CC

Jnbmom — Wed, 16 Mar 2022 23:37:42 GMT

I still don't think is worth stressing and making multiple payments a month . Not sure what cards you have or your limits . Just because for example have a 300 limit on some cards you don't have to keep charging and paying . Rotate your cards you don't have to use every card every month that in itself is very stressful .

Re: New credit w/5 CC

RobynJ — Wed, 16 Mar 2022 23:49:51 GMT

@Jnbmom

Cap one Platnum $301/$28

Dico $300/$98

Open Sky $200/$5

NavyFCU $1000/$0

Amex Blue (AU) $30,000 /$525

Re: New credit w/5 CC

Jnbmom — Wed, 16 Mar 2022 23:56:29 GMT

@RobynJ wrote:
@Jnbmom
Cap one Platnum $301/$28
Dico $300/$98
Open Sky $200/$5
NavyFCU $1000/$0
Amex Blue (AU) $30,000 /$525

I would probably focus on navy and discover , discover likes spend. You are off to good start .

Re: New credit w/5 CC

Anonymous — Sat, 19 Mar 2022 00:03:13 GMT

As you only have 5 cards, I would suggest you change the due dates to match same day (+/- 2 days) of the month, create a spreadsheet with the statement closing date, then PIF all but one ( leave $2 - $3 balance right before statement closing date).

You are in a position where AZEO will be the most effective and you'll develop a habit of being conscious about making payments on time and keeping your utilization ratio under 7%.

Lastly, take out a small personal loan that you can make a principal payment on every month where you don't pay any interest. Ideally, from a store that offers 0% apr deals. Other than that, don't try to to open any more cards for the next couple years. Ask for a CLI every 6 months in between and you may see a score above 750+ at the end of those 2 years.

This is my biased feedback, but that is a plan I would follow do if I had the chance to start over from zero.

Re: New credit w/5 CC

FireMedic1 — Sun, 20 Mar 2022 07:49:45 GMT

@RobynJ wrote:
@Remedios @coldfusion
Thank you both. I have been doing exactly that, stressing on not spending more then 28% of CL and making sure it was paid prior to statement day (it's a pain in the azz with pending transactions and all). Well I have been using them all the time and making 10+ payments a month to assure I am under the util I always read about in here.

@RobynJ

Little correction. You dont want >28% reporting on individual cards or aggregate util come statement date. Its not usage. Its reporting. Thats plastered all over the internet. The more you spend on a card. The better chance of getting CLI's increases. So you can knock out all the payments your making a month. Good Luck!

Re: New credit w/5 CC

RobynJ — Sun, 20 Mar 2022 13:36:04 GMT

@FireMedic1

Thanks for the input. It's weird once you get started building again, it's like an itch you have to scratch.

Re: New credit w/5 CC

805orbust — Sun, 20 Mar 2022 14:35:31 GMT

@RobynJ I wouldn't exactly call AZEO talk "propaganda" but yes, it is definitely mulled over much more than necessary here. If the utilization on that AU Amex remains as is, your score will be comfortably over 700 if there are no derogatory items on your reports. I agree with everyone else, don't let it spoil your weekend. 10 payments a month and even the smallest amount of stress is unnecessary. Use 1 or 2 each month naturally, pay, rinse, rotate, repeat.

Guarantee NFCU will give you a nice raise soon and then you can enjoy my insane rants about Credit One and Open Sky and who to close, and the whole gang can tell you who to apply with next. Don’t rob yourself, or us of that fun by overly stressing, we've all been there, before you know it it'll get MUCH easier 🙂

Re: New credit w/5 CC

SouthJamaica — Sun, 20 Mar 2022 14:37:24 GMT

@RobynJ wrote:
I have posted my journey on another post but have a question about the new CC I recently acquired. I have a 0 score still (started building back in February) so I have another 4 months until a score will generate I am to understand. My question is should I let a small balance report on each card before PIF or should all but one carry a balance before PIF? I have seen different ideas on here to which is a better option. Please advise.

The optimal method for scoring purposes is to let all but one report zero while one bank card reports a small balance before paying it off ("All zero except one" = AZEO).

"Carrying" a balance means carrying a part of the balance forward from one cycle to another; there is never an advantage to doing that.

Re: New credit w/5 CC

RobynJ — Sun, 20 Mar 2022 14:45:37 GMT

@SouthJamaica

I worded that wrong, I was trying to say should I let a balance report then PIF. Thank you for the answer. I love the help and considerate ways of others on here. Finally a place to not be judged but instead lifted up to be a better me.

@805orbust

I am excited to know that with patience I can do exactly that. Thank you!

Re: New credit w/5 CC

805orbust — Sun, 20 Mar 2022 15:05:37 GMT

@RobynJ it's a pleasure. Everyone was so great to me when I was rebuilding as well. I'm confused about something... when did you last check your scores? I thought the 6 month thing only applied with new accounts that haven't aged. In the thread "credit rebuild project log" (my ALL TIME favorite... highly recommend), the OP added his mom in law to a seasoned account and she had a 770 in a month. I did this with 3 of my children as well and it took weeks. If that Amex that you are AU on is not a brand new account, you may have had scores generated already... just a thought. Maybe @SouthJamaica or @Jnbmom or @FireMedic1 can chime in.

Re: New credit w/5 CC

805orbust — Sun, 20 Mar 2022 15:17:43 GMT

Ok found the thread here:

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/From-0-to-800-An-experiment-in-building-a-credit-file-from/td-p/4649418

I did this with all 3 of my youngest as they turned 14 or so and they've been over 750 their whole time in the credit world. Check it out, and if you can, try to ignore my fanboy behavior... it was 2016 and I was still excited just to be here 🤣

Re: New credit w/5 CC

RobynJ — Sun, 20 Mar 2022 15:31:48 GMT

@805orbust

Unfortunately I learned after being added that AMEX stopped allowing AU to benefit from the AOA back in 2015 (I believe). Either way I will benefit from the good pay and high CL.