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Managing New CC, PIF Each Month

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Established Member

Managing New CC, PIF Each Month

Good Morning,

 

I have one cc since beginning my quest of rebuilding my credit. It's an OB card with a $300 limit. I've had it since April, and use it responsibly, utilizing 10% each month. Yesterday, I was alerted that my fico jumped 21 points, yay for me! Smiley Very Happy

 

My question: what looks better to future lenders/credit companies when they view my CR - waiting until my monthly statement is issued and then paying in full (which is how I have been handling it), or PIF before the statement date?

 

Or does it really make a difference either way?

 

Thanks,

Mark


Starting Score: EQ 624 TU 605
Current Score: EQ 642 TU unknown
Goal Score: 700


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Contributor

Re: Managing New CC, PIF Each Month

Either method is fine to be honest. As long as you pay your balances in full either before the statement cuts or after (before the due date) I think you'll be fine. Even if you decide to carry a balance for a month or two, as long as you're paying more than the minimum payment I think you'd be in good shape. Smiley Happy

Message 2 of 6
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Valued Contributor

Re: Managing New CC, PIF Each Month


@Celtics34 wrote:

Good Morning,

 

I have one cc since beginning my quest of rebuilding my credit. It's an OB card with a $300 limit. I've had it since April, and use it responsibly, utilizing 10% each month. Yesterday, I was alerted that my fico jumped 21 points, yay for me! Smiley Very Happy

 

My question: what looks better to future lenders/credit companies when they view my CR - waiting until my monthly statement is issued and then paying in full (which is how I have been handling it), or PIF before the statement date?

 

Or does it really make a difference either way?

 

Thanks,

Mark


Very Good!   Good for you  Smiley Happy

 

IMO, since you only have one cc ... I say keep up your good work.   May better to bring the util down to lower than 10% to see how does your score changes.

 


 

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Message 3 of 6
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Established Member

Re: Managing New CC, PIF Each Month

Hi Bunnyrabbit,

 

Lower than 10% utilization will improve my score? really? I thought keeping it around 10% was optimum, that it shows I can use credit responsibly?

 

Thanks,

Mark


Starting Score: EQ 624 TU 605
Current Score: EQ 642 TU unknown
Goal Score: 700


Take the FICO Fitness Challenge
Message 4 of 6
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Moderator Emerita

Re: Managing New CC, PIF Each Month


@Celtics34 wrote:

Hi Bunnyrabbit,

 

Lower than 10% utilization will improve my score? really? I thought keeping it around 10% was optimum, that it shows I can use credit responsibly?

 

Thanks,

Mark


I'm not bunnyrabbit, but most of us find that the lower the reported util is, the better our scores, except that you don't want it to be 0%. Let one account report a small balance, in other words.

 

Even when our accounts report $0, reports indicate whether the account is being used or not.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 5 of 6
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Senior Contributor

Re: Managing New CC, PIF Each Month

You may already realize this, but I wasn't sure from your post.  You don't have to limit yourself to only using 10% (or less than 10%) of your CL each month.  The less than 10% "rule" is for reporting purposes.  You want to pay your CC down to less than 10% of it's limit before the statement generates because the statement balance is what gets reported to the CRA (this is for most cards, some cards report the end of month balance and Orchard may be one of them, you'll have to check around for that).  Then, after the statement cuts you pay your balance in full so you don't pay interest.  The point is that you are controlling what gets reported.  You aren't limited to only using your card for a $30 purchase every month. 


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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