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CC app and UTIL question

usagichan
Established Member

CC app and UTIL question

Hello all!  I have a couple of questions.

 

I (finally) paid off all my CC balances in September.  It was through a CCCS, and when the accounts were paid off, they were closed automatically.  So the only available credit I have is with 2 relatively low balance store CC's.

 

I want to get a new card with a higher CL for UTIL reasons and also in case of some horribly emergency that would exhaust my EF.  A reply to a post I made about this a couple months ago suggested BoA for a card w/ a high CL. 

 

That's one of the accounts that was paid off and closed through the CCCS.  Would that fact come into play if I applied for a new card with them?

 

I also am a member of a credit union through my job.   I had my car note refinanced through them earlier this year, but it was kind of strange.  They denied me at first for having balances on my CC's, even though my credit score then was pretty good.  Then they called me up out of the blue about 3 months later and offered me the loan.  So I'm not sure if I should apply with them or not.

 

Any input on those 2 options, or another one?  I'd really rather have a Visa as to any other card.

 

Also, I'm quite confused about the whole UTIL thing.  I don't want to carry any balance on my cards, but I do want to use them occasionally and then pay in full to keep my UTIL b/t 1 and 9%.  What is the timing of that, and the timing of their reporting it to the bureaus?  What should that look like on my report?  In mid October I charged something on one of the store CC's and then paid it off after the statement came out.  I just pulled all 3 scores today, and for that card, the balance says $0 with the last payment/activity in Nov 08.

 

Scores as of today:

TU 753

EQ 768 

EX 790!!! Hells yea!

Message Edited by usagichan on 12-08-2008 12:30 PM
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1 REPLY 1
haulingthescoreup
Moderator Emerita

Re: CC app and UTIL question

Wow, those are great scores! (and they're FICO scores, pulled here, right?)

Anyway, I don't know if BofA would deny you because of the debt management thing, so I'll have to leave that for others.

I would definitely get with my CU, if they offer cards. I assume that earlier in the year, you did still have balances, and now that they're cleaned off, you're looking attractive to them again.


usagichan wrote:

...Also, I'm quite confused about the whole UTIL thing.  I don't want to carry any balance on my cards, but I do want to use them occasionally and then pay in full to keep my UTIL b/t 1 and 9%.  What is the timing of that, and the timing of their reporting it to the bureaus?  What should that look like on my report?  In mid October I charged something on one of the store CC's and then paid it off after the statement came out.  I just pulled all 3 scores today, and for that card, the balance says $0 with the last payment/activity in Nov 08.

Your recent reports showing a November balance of $0 are reflecting that by the time your November statement dropped, your balance was back to $0, and that updated to the CRA's last month, probably at the time of your statement date. Had you pulled your reports before your November statement, they ought to have shown the balance.

It can be a little tricky with store cards, because many don't post statements unless you have a balance, but the rule of thumb for managing your util so that it reports $0 is to stop using your card 4-5 days before you think the statement is due to post again, and then pay your balance off online a few days later. Give it one more check right before the drop date in case something snuck in. In this way, you can use the cards, thus keeping them active, but not make it look as if you're carrying balances.

Most of us find that we do better with one card reporting a tiny balance, which we then pay off as soon as it's reported to the CRA's, but it's very possible that with only two open cards, you don't need to.

If one (or both) of your cards are issued by HSBC, be aware that they won't apply your online payment to your balance for two or three days later, unless you want to pay them 15 bucks or something to have them do the job right. This is why I occasionally have a balance report on my (HSBC) Best Buy store card. Smiley Mad I'm sure that other banks do this too, so become aware of their quirks. For instance, I think that it's Chase that makes you wait three days between payments (I wouldn't swear to this), and BofA will not credit Friday night and weekend payments, as if they have Bob Cratchit keeping the books with his quill pen.

But that's basically the angle with keeping reported util very low, while still using your cards.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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