topic Re: Should I pay off the balance before statement date in General Credit Topics

Should I pay off the balance before statement date

Anonymous — Mon, 03 Dec 2007 04:52:24 GMT

Hi, I am new this this forum. But I have a question hope can get suggestion here.

I normally only have about $1000 - 1500 useage on my CCs every month and I always pay off every month.

However this holiday season I spend about $3500 on one CC (limitation 13K) and I got notice from Score Watch that my score decreased by 13 since my balance increased by about $3000.

Since I have another CC currently have $2500 (normally only have about 1000 usage on limitation of 11K)on it so far, I am wondering if should pay part of the balance off before statement date. So that I will not get further score decrease.

Any suggestion?

Thanks,

Joe

Re: Should I pay off the balance before statement date

Anonymous — Mon, 03 Dec 2007 05:15:16 GMT

13 points is a temporary hit just because your utilization went up a bit-

Both individual and overall utilization are taken into account- ideally you want less the 10% of limits reporting on 50% or less of accounts.

Don't let it go over 30% (YOU WON'T LIKE THE SCOREWATCH ALERT)

3500/13000 27%
2500/11000 23%
25% overall

Paying revolving debt is a good idea- but unless you are applying for additional credit- just pay it a normal- (and in full before a finance charge if you can)

Re: Should I pay off the balance before statement date

SmartCookie — Mon, 03 Dec 2007 05:15:33 GMT

My cc's report on the statement date... so I always pay the entire current balance the day before. That card is my main card and has heavy usage... so there is always something generating as a new balance (though very small) when the statement comes in. This is something I do because it does not just happen around the holidays... it's all year long. I never have more than 9% reporting for any card.

If this is a temporary thing and you aren't intending on applying for new credit in the next few months... I wouldn't let it drive you nuts. The scores will come back once you are paid up. But if it bothers you or you are concerned that the score drops will trigger anything major... then I suggest paying all you can before whatever date your cc's report.

Welcome aboard!