topic Re: Can someone just tell me what to do!? in Rebuilding Your Credit

Can someone just tell me what to do!?

Anonymous — Sun, 20 Dec 2015 21:23:03 GMT

I have heard every story in the book......

Use your credit cards for daily purchases but pay them off that very same day......

Use your credit cards but wait for the statement to pay them off...........

Use your credit cards and pay them in full each month..........

Use your credit cards and keep a small balance on each one............

Don't use credit cards EVER (<---- that one was from my mother!)

Can someone just tell me what to do for optimal credit rebuilding?!!!

Re: Can someone just tell me what to do!?

Bruiser — Sun, 20 Dec 2015 21:53:36 GMT

Defintely use your credit cards, within reason. They want to see that you're using credit. Without usage, your score won't go up much.

Make sure to do the following:

- Pay in full before they report (typically the statement date)

- Leave one card with a small balance (less than 10%)

I like to pay off my balance as soon as it clears pending. I pay off all of my credit cards to a $0 balance except one.

Re: Can someone just tell me what to do!?

Anonymous — Sun, 20 Dec 2015 22:01:42 GMT

@Bruiser wrote:
Defintely use your credit cards, within reason. They want to see that you're using credit. Without usage, your score won't go up much.

Make sure to do the following:
- Pay in full before they report (typically the statement date)
- Leave one card with a small balance (less than 10%)

I like to pay off my balance as soon as it clears pending. I pay off all of my credit cards to a $0 balance except one.

This is the correct answer to your question use your cards to pay as many of you monthly bills as you can then pay the cards off a couple of days before the statement cuts allow just one card to show a balance of less than 10% of you credit limit after its statement cuts. Rotate your cards to insure all get used every 6 months or so.

Re: Can someone just tell me what to do!?

Anonymous — Sun, 20 Dec 2015 22:13:07 GMT

I've been using my cards and before going to bed at night paying off what I spent that day. Not good?!

Re: Can someone just tell me what to do!?

Bruiser — Sun, 20 Dec 2015 22:16:26 GMT

No, that's good.

Just be sure to leave a small balance on one of your cards for reporting. (less than 10%)

Re: Can someone just tell me what to do!?

Anonymous — Sun, 20 Dec 2015 22:30:15 GMT

@Anonymous wrote:
I have heard every story in the book......

Use your credit cards for daily purchases but pay them off that very same day......

Use your credit cards but wait for the statement to pay them off...........

Use your credit cards and pay them in full each month..........

Use your credit cards and keep a small balance on each one............

Don't use credit cards EVER (<---- that one was from my mother!)

Can someone just tell me what to do for optimal credit rebuilding?!!!

It is good to use CCs for all your expenses. It is even better if you can get a CC that offers rewards for use, but not always possible when starting out or rebuilding.

I make sure I have the payment in at least a couple days before the due date. I try to PIF. Then let it sit at zero until after the statement cuts. What shows on the statement is what will be reported to the CRAs and that makes up my credit reports. Then I start the process all over again for the next month. Any CC that I carry a balance on, I make the payment at least 3 times the minimum plus $5, to show a big effort on my part, but that's just my habit or superstition.

To encourage a CCC to 'look at me, I am a great customer and you need to give me a big CLI', I use the card often and make multiple payments during the month. I am trying to show them I need more room, I am bumping up against their wall. With other CCs, I just do normal use and pay it once before the due date.

You need to have at least 3 CCs and you will get the best chance at a score bump if you can have all of them report at zero, except one at less than 10% UTI.

Try to use all of them at least once every couple three months for at least a small charge.

Keep it simple for reporting and dont try a complicated pattern of rotating CCs that carry a balance.

I think what your Mother was trying to tell you is to not get under credit card debt, meaning dont get a card with a 5k limit and charge up 4800 or more.

HTH

Re: Can someone just tell me what to do!?

Anonymous — Sun, 20 Dec 2015 22:33:59 GMT

How do you know when the statement will cut?

Re: Can someone just tell me what to do!?

Anonymous — Sun, 20 Dec 2015 22:50:28 GMT

@Anonymous wrote:
How do you know when the statement will cut?

I look in the online account management for each CC and make a note on when it is posted. If you get the paper statements, it will have a date shown on it.

In general, all of my CCs have statement dates that are 3 to 5 days after the due dates,with one exception.

My Cap1 CC is 3 days after due date and my Walmart MC is 7 days after. Others are 3 to 5 days.

It really took me two billing cycles to verify the patterns and my Walmart CC is only one cycle so it could change.

HTH

Re: Can someone just tell me what to do!?

OMW2_HighAcheiver — Sun, 20 Dec 2015 22:57:25 GMT

Or...you could just call customer service and ask 😆

Re: Can someone just tell me what to do!?

Anonymous — Sun, 20 Dec 2015 23:20:36 GMT

Call and ask, my cap1 card cuts on the 20th BUT it's whatever charges I have on the 17th that make it onto the bill.... I wouldn't chance it, get someone to tell you outloud what day

Btw, when it comes to credit building, the agencies have no idea how often you pay your bill, all they know is how much your statement was and if you're paying it, so paying your bill everytime u charge something would have no impact on your reporr

Re: Can someone just tell me what to do!?

Anonymous — Sun, 20 Dec 2015 23:29:28 GMT

@Anonymous wrote:
I have heard every story in the book......

Use your credit cards for daily purchases but pay them off that very same day......

Use your credit cards but wait for the statement to pay them off...........

Use your credit cards and pay them in full each month..........

Use your credit cards and keep a small balance on each one............

Don't use credit cards EVER (<---- that one was from my mother!)

Can someone just tell me what to do for optimal credit rebuilding?!!!

lmao..we all had that mom!

Re: Can someone just tell me what to do!?

Bruiser — Sun, 20 Dec 2015 23:40:33 GMT

@Anonymous wrote:
Call and ask, my cap1 card cuts on the 20th BUT it's whatever charges I have on the 17th that make it onto the bill.... I wouldn't chance it, get someone to tell you outloud what day

Btw, when it comes to credit building, the agencies have no idea how often you pay your bill, all they know is how much your statement was and if you're paying it, so paying your bill everytime u charge something would have no impact on your reporr

It has no direct impact on your report, but it doesn't hurt and could save you from accidently reporting too much used credit %.

They do see how much you charge on your card though, which has an impact on future credit line increases. Paying in full and using your card a lot will help in the long run if you want a higher limit.

They can see total charges for the month, highest total amount reporting on card, and if you're in good standing or not.

Re: Can someone just tell me what to do!?

Anonymous — Mon, 21 Dec 2015 03:09:13 GMT

It definitely helps your relationship with the CC company, but they have no idea if I pay my balance everyday or once a month. I'm not saying there aren't benefits, I'm just saying it won't help your score

Re: Can someone just tell me what to do!?

Anonymous — Mon, 21 Dec 2015 06:18:31 GMT

@Anonymous wrote:
It definitely helps your relationship with the CC company, but they have no idea if I pay my balance everyday or once a month. I'm not saying there aren't benefits, I'm just saying it won't help your score

I am thinking each CC you have an account with would be able to review your account with them, but not any of the others.

For instance, I wanted to impress BoA that I had a secured CC with, so I paid multiple times within each month and gave them lots of swipes and spending They graduated my secured CC after six months without me requesting it (so it was a SP), and they told me it usually happened in 12 months.

Other CCCs would not be able to see that level of activity, only the summary info reported to the CRAs.

You're right, it doesnt help my score each month, but it will help ny credit profile in the long term. I'm also hoping it will encourage them to give me auto CLIs.

Re: Can someone just tell me what to do!?

Anonymous — Mon, 21 Dec 2015 13:02:32 GMT

And if something happens and you accidentally let a high UTI report don't stress (assuming you at least paid the minimum before the due date). Utilization has no memory so the next month you can pay the UTI down.

Re: Can someone just tell me what to do!?

lg8302ch — Mon, 21 Dec 2015 13:28:16 GMT

@Anonymous wrote:
I've been using my cards and before going to bed at night paying off what I spent that day. Not good?!

If this is easier for you to keep your budget...then perfect. For me it would be way to stressful to pay every day. I do pay my cards only once after statement is cut ....yes I know about the utilization ..but do not need to have the scores in best shape if I have no intention of applying for anything. I will only watch the number of cards reporting a balance if I plan to app for a new card. With low limit cards I would pay down before statement is cut and let a small balance report and then pay it in full after statement is cut. Do whatever is easiest for you but do use your cards and pay in full so no interest is charged. Even if you let a maxed out card report for 1 month it is not a big deal..just pay it off and don't do it on all your accounts at the same time .. remember Fico has no memory for utilization..whatever drop you get on your scores will come right up when it is paid. So don't worry too much about that.

edit: The most important: Never miss a payment - ever !

Re: Can someone just tell me what to do!?

elim — Mon, 21 Dec 2015 14:46:14 GMT

@lg8302ch wrote:
@Anonymous wrote:
I've been using my cards and before going to bed at night paying off what I spent that day. Not good?!

If this is easier for you to keep your budget...then perfect. For me it would be way to stressful to pay every day. I do pay my cards only once after statement is cut ....yes I know about the utilization ..but do not need to have the scores in best shape if I have no intention of applying for anything. I will only watch the number of cards reporting a balance if I plan to app for a new card. With low limit cards I would pay down before statement is cut and let a small balance report and then pay it in full after statement is cut. Do whatever is easiest for you but do use your cards and pay in full so no interest is charged. Even if you let a maxed out card report for 1 month it is not a big deal..just pay it off and don't do it on all your accounts at the same time .. remember Fico has no memory for utilization..whatever drop you get on your scores will come right up when it is paid. So don't worry too much about that.

edit: The most important: Never miss a payment - ever !

I prefer this method (CLI mode)... I take a couple cards with me for a couple weeks, spend big, pay big. 1 big payment after statement cuts. Of course if i have been in the garden for 4 or 5 months, I take a look at my cut dates and report perfect utilization at the 6 month mark (if i'm grabbing another card(s)). IMO always paying before statements cut shows wimpy spend accross accounts. If you decide later to pay after statement cuts, it may even be flagged as abnormal. just a guess and is certainly only my view.

I always back up my spreadsheet with prism app to make sure i never have a late payment.

Re: Can someone just tell me what to do!?

Anonymous — Mon, 21 Dec 2015 16:18:32 GMT

@Anonymous wrote:
How do you know when the statement will cut?

Just look at your last statement. The statement period will be clearly shown. The closing date will be the same day every month.