Help.... I think I've been playing UNO when everyone has been playing Chess.

[Sha80]

For months I've been upset behind denials because I pay in full before the statement and I have <8% DTI. My light went off today... TA-DAAAA! When everyone advises stay below 30% utilization I misunderstood that as reporting not for the monthly high limit. All this time I've been using 80%+ on my cc's & PIF before my due date. The actual process you all are using is staying less than 30% at all times.

If I'm right, won't I miss out on points & cash back possibilities? Like on my Freedom I have a $500 CL but I've ran $1000 through it 2 weeks & paid in full each time. With my Cap 1 rewards I have $1k limit but use roughly $2500 a month. Am I hurting myself & delaying my progress for a Starbucks or iTunes gift card? Please help me get back in the game.

[jsucool76]

Im a little confused by your question/scenario

The general rule of thumb when apping is to report a 0 balance on all but one card (by paying before statement cut date) and report a 1-9% balance on one of your cards. It should shoot your score up a few points by doing this.

Paying early has no effect on your rewards, nor does making multiple payments per month.

[frugalQ]

I believe it's to let <10% report on CRA...not actually use during the reporting cycle.

I've read many posts where people spend well above their credit limits during the reporting cycle by paying multiple times.

[BrokaToe]

You can spend billions of dollars on your cards each month as long as not more than 10% is the current balance at the time the statement cuts. Then pay the 10% off before the due date.

It doesn't matter how much you spend on it during the cycle, what matters is what's on it when the statement cuts, that's what gets reported to the CB.

Of course this mainly matters when you're getting ready to app for something. But I think generally it's best even if not apping to keep reported util below the 50% mark, that's just my own personal preference.

The rule goes: 1%-9% reports on statement date on 1 card, all the rest report 0$

Again, this is just my opinion on the subject.

[Rhaeny]

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@Sha80 wrote:
For months I've been upset behind denials because I pay in full before the statement and I have <8% DTI. My light went off today... TA-DAAAA! When everyone advises stay below 30% utilization I misunderstood that as reporting not for the monthly high limit. All this time I've been using 80%+ on my cc's & PIF before my due date. The actual process you all are using is staying less than 30% at all times.

If I'm right, won't I miss out on points & cash back possibilities? Like on my Freedom I have a $500 CL but I've ran $1000 through it 2 weeks & paid in full each time. With my Cap 1 rewards I have $1k limit but use roughly $2500 a month. Am I hurting myself & delaying my progress for a Starbucks or iTunes gift card? Please help me get back in the game.

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Slight clarification.  If you want your util to stay low the best tip is to pay before the reporting date, and in some cases its not the statement date.  For example, DCU reports on the balance on the 30th of the month but the statement date is the 15th.  So if I want low util reported I PIF by the 30th.  However, most of my cards do report statement balance but I wanted to throw that out there.

EDIT:  And I want to add that unless I'm apping for something or trying for CLI's, I don't care what my utilization is.  My score can fluctuate all it wants.

[Sha80]

Rhaeny that's what I meant. I have a spreadsheet that itemizes every statement date, due date, & reporting date. Sounds like I've been doing the right thing I may just be over thinking.

[Rhaeny]

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@Sha80 wrote:
Rhaeny that's what I meant. I have a spreadsheet that itemizes every statement date, due date, & reporting date. Sounds like I've been doing the right thing I may just be over thinking.

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Well if you have that sort of detail then a resounding YES!!  You are on the right track and doing things correctly!!

As for why you are getting denials, any baddies left and if so what are they and how old are they?  How many inquiries do you have?  What's your AAoA?  You know sometimes the only thing that can change anything is time no matter how bad we want it. 

I mean I have been in the same boat so I am speaking from pure experience here...LOL!  The easiest thing to do is to do nothing, but its also the hardest due to having to restrain yourself especially when we are here reading all of about others successes. 

[Anonymous]

Yep I agree that you don't have to keep utility low all the same but instead, just before applying for something and then you wait for the low balances to report before you pull the trigger.

I don't worry about paying before the statement date because I'm in the garden. My balances flutuate up and down randomly every month. I use 80% max or so and PIF before the due date. If I'm taking advantage of a 0% APR promo while in the garden, I don't PIF. My highest single utility on a card right now is 69% and that is because I'm paying installments on a large purchase that came with 0% APR over 24 months. My utility on my other cards range from 20% to 40% each month.

[Anonymous]

Darn it! I forgot to say that you are correct. If you put less through the card each month, you earn less cash back. I charge up 80% per month on a given card for rewards. But when I PIF by the due date, usually 20%-40% actually gets reported.