Thank you for the input, folks. I just want to make sure I'm clear: So if I want to improve the credit utilization number, I have to pay the full statement balance on the card, before the statement period ends. And not in that period beteween the statement end date and the due date? If that's the case, then on many of my cards, it probably shows a high utilization because the cards aren't paid until a couple of days before the due date, but then the credit agencies don't see that there's really no balance.
@B_Slow1 wrote:Thank you for the input, folks. I just want to make sure I'm clear: So if I want to improve the credit utilization number, I have to pay the full statement balance on the card, before the statement period ends. And not in that period beteween the statement end date and the due date? If that's the case, then on many of my cards, it probably shows a high utilization because the cards aren't paid until a couple of days before the due date, but then the credit agencies don't see that there's really no balance.
If you want to lower your reported utilization, look at the actual balance of the card when you go to pay it and base your payment on that instead of the statement balance. The statement balance is the balance when the statement cut, but if you continue using the card, you're adding to the balance, then if you PIF the statement balance before the due date, you still have the new charges reporting a balance on your next statement, and that's what the bureaus see (in most cases).
For example, let's say your card has a due date of the 25th and a statement cut on the 28th. On June 28, let's say your card has a $400 balance and the statement cuts. You run up another $500 in charges between June 28 and when you pay the $400 statement balance on or before July 25. You PIFed the card and don't get charged interest, but that $500 in new charges will apply toward your utilization and impact your credit score when your statement cuts with the $500 balance July 28.
So, instead of paying the $400 statement balance, pay a larger amount, like the entire balance to date. Nowadays since you can get your balance "up to the minute" online, this is easy to do... just get the balance, make the payment, and let it post. Now you'll have a zero, or small balance reporting and your scores will improve.
With Chase cards, you also have the ability to have it report anytime when you pay the balance to zero, so even if a charge posts between the time you paid off the card and the statement cuts, you can make another payment to zero the balance and it will report.
Make sure you don't let all your cards report a zero balance at the same time though, since that will incur a score penalty as well. Let one report a small balance, under 5% utilization or so, and zero out the rest. AZEO (All Zero Except One) is a technique to maximize your scores when you're going to apply for credit.
Thanks for all of the helpful information. I've been too lazy with paying off my cards; just doing what was necessary to avoid interest without really thinking about utilization or anything else. So I'll try to work on that.
Just as an update, I did receive an email from Chase on 7/6 notifying me that I was Approved, which is welcome news.
I was at 4/24 when applying. This is my 4h Chase card, 2nd personal Chase. Credit scores in the 730s (probably impacted by utilization now that I think of it...). Credit Limit: $4100.
Gonna try to take advantage of that gas promo!
