For credit scoring, using the card and paying it off immediately, is essentially the same as never using it. The way credit scoring works, your balance at the time of reporting to the credit bureaus is really the only thing that matters. Most cards report to the bureaus the balance of your card at the end of your statement closing date.
So, if your statement closes on the 5th of every month, the balance on your card on the 5th is the only thing that matter for scoring purposes. If you pay your card to $0 on the 4th, it looks like you never used the card, which is fine. Basically all that matters is that on the statement date (the 5th in this case) your balance is between 1-9% of your limit.
Also, this only matter in those months where someone is looking at your credit score because you are applying for something. Every other month doesn't matter, since FICo doesn't keep track of utilization on an ongoing basis.
Use the card however you want, and just pay it down before the statement date to 1-9%. Then pay the remainder off before the due date.
So, if your statement closes on the 5th of every month, the balance on your card on the 5th is the only thing that matter for scoring purposes. If you pay your card to $0 on the 4th, it looks like you never used the card, which is fine. Basically all that matters is that on the statement date (the 5th in this case) your balance is between 1-9% of your limit.
Also, this only matter in those months where someone is looking at your credit score because you are applying for something. Every other month doesn't matter, since FICo doesn't keep track of utilization on an ongoing basis.
Use the card however you want, and just pay it down before the statement date to 1-9%. Then pay the remainder off before the due date.
The quote button disappeared from my iPad..... Mods have any answers??
Anyway - it does technically raise your score to REPORT, not carry, a $1 balance versus $0.
Carrying implies that you did not pay in full by the due date, and therefore paid interest. Reporting just means that there was a balance on your card at the time the bank reported to the credit bureaus. Just pointing out the difference.
Also, you should try to use the card once in a while so that it does not close due to inactivity. It is possible that if you let the card go active that it would no longer be reporting to the bureaus, and therefore wouldn't be showing as an "open tradeline". Many mortgage lenders require a borrower to have numerous open tradelines to qualify for a mortgage.
Anyway - it does technically raise your score to REPORT, not carry, a $1 balance versus $0.
Carrying implies that you did not pay in full by the due date, and therefore paid interest. Reporting just means that there was a balance on your card at the time the bank reported to the credit bureaus. Just pointing out the difference.
Also, you should try to use the card once in a while so that it does not close due to inactivity. It is possible that if you let the card go active that it would no longer be reporting to the bureaus, and therefore wouldn't be showing as an "open tradeline". Many mortgage lenders require a borrower to have numerous open tradelines to qualify for a mortgage.