topic Re: CC uti question, 9% apply if payoff every month in Rebuilding Your Credit

CC uti question, 9% apply if payoff every month

wowchad — Tue, 01 Sep 2009 16:30:14 GMT

Does the 9% rule apply if I'm paying my credit card (s) in full every month?

I have three cards that I usually pay in full every month, but is that "paid in full" reflected in the report?

My score watch just shows the current balance and doesn't really say they get paid in full.

So to build my credit is the utilization from these cards good or should I pay them off and shelf the cards until my report shows a continued low (9% or better) balance? Chad

Re: CC uti question, 9% apply if payoff every month

jackg — Tue, 01 Sep 2009 21:11:39 GMT

In order to have your credit report state a zero balance due you have to PIF before the CCC reports to the CRA's. and don't charge anymore until after the closing date for that acct.

It sounds like your current process is you receive the statement , write a check for the balance due & mail it off. Correct?

To optimize your FICO score in the segment called "Amounts Owed" (30% of your overall score) you should have no more than 50% of all tradelines reporting a balance due, it includes revolving, installment, & mortgage accts. Also do not let all tradelines show a zero balance, FICO does'nt like that. I use the 2-3% utilization rule as best for FICO scoring.

Good Luck

Re: CC uti question, 9% apply if payoff every month

wowchad — Tue, 01 Sep 2009 22:04:58 GMT

That's going to be a hard practice to get into but I'm glad I asked!

Because that means right now it looks like I owe over $1000 nearly every month. I thought it showed up as great utilization.

Re: CC uti question, 9% apply if payoff every month

marty56 — Wed, 02 Sep 2009 00:55:19 GMT

One thing I did back in DMP days was Itried to save 1 month DMP yament in case something went bad. if you can do that, you should be able to control how much gets reported each month (if any).

National City wont let me pay until the transaction actually posts and if you make an online payment, you must wait 4 days to make another one, so keep that in mind if you pay the balance down but not PIF. Check with your CCC on online payment rules.