Making strategically timed payments to reflect best possible balance on credit report

[Anonymous]

I'm new to managing my credit proactively so I apologize if this sounds simplistic or stupid but I am looking at my credit report (only got a free one so I'm just seeing a "snapshot" of a point in time at this point) but I have begun to wonder if it would be possible to plan when I make payments each month based on the date that the company sends their update, which shows as "date updated" the the credit reporting agencies (assuming its the same date to all CRA's?). Basically, I am trying to get a handle on my credit card debt and one account I tend to make frequent payments to each month, as I need more money on the card (using it sort of like an ATM as I don't trust using a debit card with the CC logo due to past fraud abuse of such a card). I also can pay bills directly off this card without any penalty (other than that interest starts immediately on these). I'm wondering if it wouldn't, then, be best to plan a bulk payment each month, say 50% of the total owed on the card, to be just before the reporting date so that the balance always appears "optimal" since the real picture of the card is basically up and down each month.

I'd be curious to hear if anyone else has done anything like this with any success.

I know this isn't a long-term solution but I am working hard to get my financial situation in order, it just would be nice to at least present the best possible view of things in the short-term while I work on my long-term goals.

[flyingmd]

Ideally you want to pay off  91-99% of the balance several days prior to your statement date (or multiple payments throughout the month so that your balance as of the statement date reflects between 1-9% utilization (for instance, if your credit limit is 1000$, then you want your balance on the statement date to be be between 10-90$). This according to most of the info on this board and others will maximize your FICO score.

[Anonymous]

---

@Anonymous wrote:

I'm new to managing my credit proactively so I apologize if this sounds simplistic or stupid but I am looking at my credit report (only got a free one so I'm just seeing a "snapshot" of a point in time at this point) but I have begun to wonder if it would be possible to plan when I make payments each month based on the date that the company sends their update, which shows as "date updated" the the credit reporting agencies (assuming its the same date to all CRA's?). Basically, I am trying to get a handle on my credit card debt and one account I tend to make frequent payments to each month, as I need more money on the card (using it sort of like an ATM as I don't trust using a debit card with the CC logo due to past fraud abuse of such a card). I also can pay bills directly off this card without any penalty (other than that interest starts immediately on these). I'm wondering if it wouldn't, then, be best to plan a bulk payment each month, say 50% of the total owed on the card, to be just before the reporting date so that the balance always appears "optimal" since the real picture of the card is basically up and down each month.

I'd be curious to hear if anyone else has done anything like this with any success.

I know this isn't a long-term solution but I am working hard to get my financial situation in order, it just would be nice to at least present the best possible view of things in the short-term while I work on my long-term goals.

---

 You say want to get handle on credit card debt and that you are paying interest from the charge date.   IMO, developing a strategy to minimize interest payments on your CC is much more important than controlling your reported utilization.  

[Anonymous]

I think that's what most people on these boards do, regardless of what they say.  And ideally, what you've described is what the entire credit "game" is about.  You want your lowest balance to report by or before the statement or closing date.  Most CC companies usually report to the credit bureaus about 3 or 4 days after your statement closes and they report the balance as of the statement closing date.  However, you should also make sure that you're not missing your due date, which generall falls 2 to 3 days before the closing date. So if your bill is due on the 23rd and your closing date is the 26th, and you pay your bill on the 25th, you'd essentially be late.  So you need to make sure you pay your bill by or before the 23rd so that it's on time.

[john398]

I like that a lot of cc companies aloow you to change the datye your bill is due, I just changed the date all 3 of my capital one cards to coinside more to my paydates

[KingAdrock]

Yes, people can and DO make strategic payments so the best possible util% is posted to their reports. I used to do that, but admittedly the novelty wears off after a while and it gets tedious. Simply PIF is good enough for me now.

However, the main reason to do this is to maximize your FICO. If you're looking to handle your CC debt, you really should be putting your payments toward your cards with the highest interest rate. Saving money is far more important than raising your FICO a few points, especially if you aren't planning on applying for new credit anytime soon.

[Anonymous]

Thanks for the advice.. Yes I am planning on applying for a home loan within the next few months so thats why I'm considering all options to raise Fico scores. Also, I think raising score for me is a priority at the moment since I'd like to qualify for a balance transfer on one of my cards, which would lower my interest payments overall. The option of changing my due dates sounds like a great idea, the only problem for me is that I get paid bi-weekly so its a revolving date that I can't make coincide with a specific date each month, but with proper budgeting it can still be manageable to do this.

[Odiseous]

---

@Anonymous wrote:

Thanks for the advice.. Yes I am planning on applying for a home loan within the next few months so thats why I'm considering all options to raise Fico scores. Also, I think raising score for me is a priority at the moment since I'd like to qualify for a balance transfer on one of my cards, which would lower my interest payments overall. The option of changing my due dates sounds like a great idea, the only problem for me is that I get paid bi-weekly so its a revolving date that I can't make coincide with a specific date each month, but with proper budgeting it can still be manageable to do this.

---

You may want to re-think apping for a BT card, if you are going for a new mortgaege in the next few months. 

I'd hit up the Mortgage loan forums for specifics. 

[Anonymous]

Thanks, yeah I just realized this the other day, I think I will hold off on applying for a BT til after I get my loan

[Anonymous]

---

@Anonymous wrote:

Thanks, yeah I just realized this the other day, I think I will hold off on applying for a BT til after I get my loan

---

 Since you are going for a mortgage loan soon.   Controlling Utilization to maximize your FICO score is now more important than interest payments.