topic Re: Score jump? Why?! in Rebuilding Your Credit

Score jump? Why?!

Anonymous — Fri, 24 Jun 2016 18:18:26 GMT

So excited to see that my score went from 589 to 610 overnight! Nothing came off but my secured card is added on. BUT I have NOT used the card yet. Why the score increase? Excited!!!!

Re: Score jump? Why?!

Anonymous — Fri, 24 Jun 2016 18:24:48 GMT

Possibly an increase of available credit with no increase (maybe even a decrease) of utilization

Re: Score jump? Why?!

crrredit — Fri, 24 Jun 2016 19:18:54 GMT

How many cards do you have? Each of the first three cards you add should have a positive effect on your score.

Re: Score jump? Why?!

Anonymous — Fri, 24 Jun 2016 19:42:54 GMT

This is my first and only card. So 2 more will make it jump too? Then if I get more after 3 it will make it drop?

Re: Score jump? Why?!

Anonymous — Fri, 24 Jun 2016 19:46:37 GMT

Having 3 cards is the ideal. Keep 2 with 0 (zero) balance and the other with less than 10% Utilization.

I am not sure if you need to have activity on those other 2 cards though. (I am still working on getting my 3 paid off/down to 10%)

Re: Score jump? Why?!

Anonymous — Fri, 24 Jun 2016 20:10:58 GMT

I am still just so confused on how to do that. How do you know WHEN to pay them all so that 2 are at zero and 1 is at 10%? How do you know when they report? When the statements cut

Re: Score jump? Why?!

Anonymous — Fri, 24 Jun 2016 20:31:48 GMT

Its my understanding that to ensure a new balance reports on your monthly CR update you need to make your payment to the credit card approx 10 days before the actual due date, and do not make any new charges until about the 5th to 10th day of the following month to ensure the new balance is not reported in your update. Which means you have to juggle if you plan on using your cards regularly and really only have about 15 days to ensure your payment is in so it will report correctly to the CRA.

Re: Score jump? Why?!

Anonymous — Fri, 24 Jun 2016 20:35:59 GMT

@Anonymous wrote:
I am still just so confused on how to do that. How do you know WHEN to pay them all so that 2 are at zero and 1 is at 10%? How do you know when they report? When the statements cut

They report based on the statement balance. I have a spreadsheet that shows the payment date and the statement date. When I can, I pay off all but one, and pay the last one to under 10%, and then not use until the statement cuts. I also have all my cards on autopay for at least the minimum payment so in case I get hit by a car, my payment won't be late

Re: Score jump? Why?!

Anonymous — Fri, 24 Jun 2016 20:39:06 GMT

@Anonymous wrote:
Its my understanding that to ensure a new balance reports on your monthly CR update you need to make your payment to the credit card approx 10 days before the actual due date, and do not make any new charges until about the 5th to 10th day of the following month to ensure the new balance is not reported in your update. Which means you have to juggle if you plan on using your cards regularly and really only have about 15 days to ensure your payment is in so it will report correctly to the CRA.

As long as you make your payment on the due date, before the cutoff time, your new balance will be reflected on the statement that that reports. No need to juggle dates....that would be a nightmare! I have some payments due on the 4th-6th where the statement cuts on the 10th, and some that are due later in the month and the statements are cut later in the month. Just look at your statement date on previous bills. Generally the statement is about 5 days, give or take, after the payment is due.

Re: Score jump? Why?!

Anonymous — Fri, 24 Jun 2016 20:43:42 GMT

@Anonymous wrote:
This is my first and only card. So 2 more will make it jump too? Then if I get more after 3 it will make it drop?

It's not that cut and dry. Your score depends on so many individual factors that there is no way to tell what each new card will do to your current score. Just remember, this is a long term process. Your score will fluctuate 10-20 points either way most months until you have a nice, clean report.And even then, fluctuations will happen that seem to have no cause. I used to get upset when my score dropped by 5, or excited when it raised by a few. I now know that really doesn't matter at all. You just need to keep plugging forward and your score will take care of itself.

Re: Score jump? Why?!

RonM21 — Sat, 25 Jun 2016 16:37:06 GMT

Very good point above. There could be multiple reasons for the fluctuation. I'd imagine the card at least had a part in it. Either way, you are heading down a good road to more success!

Re: Score jump? Why?!

Anonymous — Sat, 25 Jun 2016 16:54:59 GMT

Thank y'all so much! Yeah it's weird it went up another 3 points this morning.