@Anonymous wrote:Make sure you know when your creditor reports to the CRA's. Some report before your payment due date. If that happens and you are at 35%, you will take a hit.
When I was applying for a mortgage I called all my creditors to see when they reported. I would pay them off a day or two before and left 50 on one. It relfected on my credit report perfectly.
How much of a hit, exactly?
Yes, when applying for a mortgage one must groom the accounts closely. Most months, however, we aren't applying for a mortgage, so letting the balances report isn't a bad thing.
^May I ask why you're going around asking everyone for an *exact* amount of points somebody's scores would take for high UTIL? Because honestly nobody can know the exact amount of points one's file would lose.
@OmarGB9 wrote:
^May I ask why you're going around asking everyone for an *exact* amount of points somebody's scores would take for high UTIL? Because honestly nobody can know the exact amount of points one's file would lose.
Good question. How many points is "a hit" ? 4? 10? 100? It's a loaded word that can be interpreted many different ways, when the reality of the impact of crossing 10% or 50% on a card is not a huge amount of points.
If we are giving information out to others, especially to those asking a question because they don't know the frame of reference, have not experienced it, it is important that information should be useful, not vague. And not scary either, because that is inappropriate. And the most common reply is to use scare words, not facts.
@Anonymous wrote:Good evening to all. Question? Other than paying interest fee. Is there wrong with carrying a balance on credit cards? Is it viewed in the eyes in the banks as a bad thing? Thanks in advance.
Make sure you understand how interest is calculated and how the grace period (which you loose for.
the duration of carrying a balance) works. The effective cost of carrying an interest bearing balance
on a daily driver card is more than the stated interest rate would imply.
Your payment behavior is tracked by your issuers and they use the information to categorize you as
a customer. The categories are broadly referred to as Transactor and Revolver. It is generally assumed
that issuers treat transactors (who don't typically carry balances) somewhat better than they do otherwise
equivalent revolver customers. Not necessarily "wrong" to be a revolver but it does perhaps have small
downsides beyond interest paid.
+
850 FICO8 since 2015, Thanks MyFICO - 5+ years since last HP