Accuracy of Discover Pre-Qual

[Anonymous]

Overall utilization is a factor, but individual card utilization is also a factor.

For example, say you have 100,000 total available across 10 cards (10k limit each - just to keep things simple).

9 cards could be at zero balance, but if you have that last card with 9k used, it will tank your scores having the card at 90% utilization, even though overall you are only at 9% of all total limits combined.

As reference, my scores jump around between 740-770 quite a bit if I let a few thousand report on any of the 10k or smaller cards, then they bounce up again the next month if the reported amount is back to zero.

[Anonymous]

Good to know. Hopefully paying that platinum off bumps my scores a bit then.  

I'll be more careful about the util. I think I have the report dates for my cards pegged down pretty well now. Capital One Plat is due on the 21st and always reports on the 24th (I've been watching this one for 3-4 months now). I thought it was good to have a balance on the statement and reported. Maybe just a low balance.. 20 or 30 bucks? 

QS1 has the first due date of 04/01 so I wonder when that will report to the bureaus. 

[joltdude]

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@Anonymous wrote:

Good to know. Hopefully paying that platinum off bumps my scores a bit then.  

I'll be more careful about the util. I think I have the report dates for my cards pegged down pretty well now. Capital One Plat is due on the 21st and always reports on the 24th (I've been watching this one for 3-4 months now). I thought it was good to have a balance on the statement and reported. Maybe just a low balance.. 20 or 30 bucks? 

QS1 has the first due date of 04/01 so I wonder when that will report to the bureaus. 

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A quick class in utilization

As always YMMV...

Utilization has no memory.. So if your paying off or making payments on stuff.. it will drop once the payments report.. 

Also PIF means.. paying before the due date, not the statement  date....

The only time id micromanage and worry about paying/paying off stuff BEFORE the statement is if im trying to app for something and want to optimize my report...

Thats when paying before the statement is useful

Otherwise its a headache .. Credit is meant to be used, And by paying in full AND paying before the due date.. (usually for me i make a payment right after the statement generates, usually the min or rounded up, then one closer to the actual due date for what i want to pay for the month).... But i try not to worry about utilization and paying before statement unless im going to apply for something in the next month.... 

(also for folks who disagree and/or want to make corrections or comment, please do.. )

Actually I will add an edit: to this... There is a situation where id highly recommend if possible you do some micromanagement.. that is if a card is close to maxxed out... Thats one case I would try to make a payment before the statement date to try to get it under the wire or pay it off.... but in general.. i don't micromanage utilization)

-J

[Anonymous]

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@joltdude wrote:

<Lots of good stuff!> 

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I will only add that if you decide you do want to micromanage before an app, what you're looking for is a <9% balance on one card, and a zero balance on all other cards.

[Anonymous]

Thank you for the feedback on utilization. 

That helps a lot.