My statement balance is $97 due on 10/13. I charged another $300 after the statement cut on 9/16. Do I PIF total balance before due date? Do I pay just my statement amount of $97 before due date and leave $300 for next statement? I only have one cc with a $7K limit.
Starting Score: FICO TU 591 FICO EX 581 FICO EQ 555
@fixmycred14 wrote:
My statement balance is $97 due on 10/13. I charged another $300 after the statement cut on 9/16. Do I PIF total balance before due date? Do I pay just my statement amount of $97 before due date and leave $300 for next statement? I only have one cc with a $7K limit.
You can do either. I tend to pay my outstanding balance whenever I do make a payment for simplicity's sake. Only time I don't is when I'm front-loading some expenses to max out a given tradeline to set high balance in a month.
That's pretty rare occurrence though and I'm starting to approach limits where I can't conceivably do that, and my credit report is pretty healthy right now other than some old negatives, so it's not nearly as important as I once viewed it.
So, which one will provide optimum scoring? If I PIF the total balance, I will need to charge something else by the time statement cuts again on 10/16, right?
Thanks again! I'm learning how to manage credit again while repairing.
Thanks again! I'm learning how to manage credit again while repairing.
@fixmycred14 wrote:
So, which one will provide optimum scoring? If I PIF the total balance, I will need to charge something else by the time statement cuts again on 10/16, right?
Thanks again! I'm learning how to manage credit again while repairing.
Over time either way won't affect much. The only time there's a negative for not using a card is if it gets flagged as Inactive, and that takes many months (six or longer typically from various reports).
Most people if they're trying to maximize their FICO, unless they have large limits compared to their typical monthly expenses, actually pay their bill before the statement cuts and in this way manage how much gets reported to the bureaus. There's a bunch of information on this forum when it comes to managing your credit card debt, take a look through the forums but the general rule of thumb is to let between 1-9% report on less than half your total number of cards (revolving tradelines technically but that's mainly credit cards for most people), or for simplicity's sake, only on one card and have the rest report zero.
It's not an exact science as no two credit reports are identical but this comes pretty close to maximizing the revolving utilization calculation which the FICO algorithm does from a lot of testing that the forum and others have performed. Note that FICO is instant in time, so if your'e not applying for anything, it doesn't matter that much what gets reported to the bureaus as long as you're managing the cards responsibility and not racking up charges you can't pay off within a couple of months; however, it's not a bad habit to get into for practice and in case it does suddenly matter as life can sometimes be unexpected.
Well, maybe in about a year or so I would like to apply for a mortgage. I also know that I need more than one card. I app'd for TJX too soon and was denied. The forum recommended a secure card. I'll PIF too be safe and see how it helps my score.
@fixmycred14 wrote:
Well, maybe in about a year or so I would like to apply for a mortgage. I also know that I need more than one card. I app'd for TJX too soon and was denied. The forum recommended a secure card. I'll PIF too be safe and see how it helps my score.
I'd check over in the mortgage forums to ask but I think you want 4 tradelines or thereabouts pre mortgage application. Absolutely want 2+ cards.
If you're trying to hit a mortgage a year out, setup another secured card, and if you're lacking in installment history and you can swing it with a CU get a secured credit-builder installment loan as well. Example of one, other institutions have similar: https://www.dcu.org/loans/credit-builder.html
Do both as soon as you possibly can, and then sit on your hands credit wise until you close your mortgage.
Hey there!
I have student loans that just came out of deferment. Would that qualify as installment accts? I just paid off my car in August. The company removed every single late on my acct as a GW gesture.
Okay, I will get the secured cc soon.
I have student loans that just came out of deferment. Would that qualify as installment accts? I just paid off my car in August. The company removed every single late on my acct as a GW gesture.
Okay, I will get the secured cc soon.
@fixmycred14 wrote:
Hey there!
I have student loans that just came out of deferment. Would that qualify as installment accts? I just paid off my car in August. The company removed every single late on my acct as a GW gesture.
Okay, I will get the secured cc soon.
Student loans are installment but I've heard reports from auto F&I guys that they're a little wonky compared to mortgage/auto/personal loan, not sure that translates though to mortgages where the baseline FICO '04 score is still used. With a paid auto loan you're mostly in good shape, it's something of a toss up: I'd probably still do it in your shoes, but I think there's a high probability you have the bases covered already and we're talking marginal improvements if any.
What's F&I?
Okay, I see your point on the student loans. I will look into the secured loan & cc. Then like you said, continue to repair & garden.
BTW-- I hoping to get the TJX cc as my 2nd card but my dreams were crushed. So, I will move fwd with a secured cc.
Okay, I see your point on the student loans. I will look into the secured loan & cc. Then like you said, continue to repair & garden.
BTW-- I hoping to get the TJX cc as my 2nd card but my dreams were crushed. So, I will move fwd with a secured cc.
@fixmycred14 wrote:
What's F&I?
Okay, I see your point on the student loans. I will look into the secured loan & cc. Then like you said, continue to repair & garden.
Finance and Insurance: the person who arranges your financing in an auto dealership; a couple have graced this forum over time and talked anecdotally on the scores they've seen for Auto-enhanced pulls over time; however, since mortgage-enhanced scores aren't commonly used yet, I don't think it's a huge concern SL vs. personal loan, but from an underwriting perspective as I understand it, a personal loan ranks higher than a student loan, but it may be a wash when it comes to FICO scoring. It certainly won't hurt anything a year out and you're short payment history currently so it'll help there too in addition to thickening your file along with your additional credit card(s).