One more time....

[Anonymous]

Purchased $47 worth of merchadise from Target on 8/16.  Statement cut and reported on 8/20.  I paid all but $7 on 8/25.  Purchased $29 more on 8/31.  Now I know my statement will cut again on 9/20.  I want to pay down to at least $18 ($200 CL), before statement cuts and reports, correct?  Thanks.

[golfmomfor3]

I would like a refresher course on this too - we just recvd Hooters, but only want to use this (and any high APR) for pay in full monthly items just to track particular expenses/ show low util ea month.  Account is not showing due date yet - what is the trick to paying before finance charges calculated and posted?

[Anonymous]

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daytona18 wrote:

Purchased $47 worth of merchadise from Target on 8/16.  Statement cut and reported on 8/20.  I paid all but $7 on 8/25.  Purchased $29 more on 8/31.  Now I know my statement will cut again on 9/20.  I want to pay down to at least $18 ($200 CL), before statement cuts and reports, correct?  Thanks.

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Okay the best rule of thumb is to not exceed 30 percent of your limit OVERALL reporting.  If this is your only card that would mean that you could reasonably let 60.00 sllide til statement date.  Optimum is 10% so that would mean 20.00.  If you pay 18 you will only be showing 18 on statement date.

[golfmomfor3]

So, you're saying as long as you pay prior to statement date (which is on or slightly after due date?) you will beat the finance charge computation?

[Anonymous]

No this is not about finance charge computation.  As long as you pay in full by the statement du date you should be FC free.  This is the utilization factor nd keeping your balances between 1 and 30% for the best FICO score computation though 1-9% utilization is better.

[Anonymous]

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Brammy wrote:

No this is not about finance charge computation.  As long as you pay in full by the statement du date you should be FC free.  This is the utilization factor nd keeping your balances between 1 and 30% for the best FICO score computation though 1-9% utilization is better.

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But it needs to show this by the time it reports to the CRA, correct?  Your report shows, current balance, high balance and available credit right?  So, obviously, the current balance must be 1-9 percent of the available.  Technically, you could max your cards and pay down to 1-9% and everything should be ok, right?

[laryn41]

i thought UTI was the % of all of your card put together.. not individual accounts.

[Anonymous]

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laryn41 wrote:

i thought UTI was the % of all of your card put together.. not individual accounts.

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FICO does calculate both overall utilization and indivdual card utilization.  I had to double check that with the powers that be awhile ago after considering maxing out a card for a BT offer.  A maxed out card can hurt your score.

That being said, if you have 45 percent here and 25 percent thre it should show the same utilzation as long as total utilization does not exceed 30%.  Max a card over 90 and you most likely will take a score hit.

[Anonymous]

Make this simple for you-

ALL of my credit card companies are now on 25 day cycles.

Lets say I have a $1000 CL and the Payment is due the 3rd and the statement cuts the 9th.

Oh and I spend $100 a week on the card.

What I do with WAMU:
When the statement cuts- I pay the min.(automatic payment)
Then just before the statement cuts I pay the Actual balance down to 5% - not just the "Statement balance" to avoid a FC.


Other method: When card used seldom/once a month:
After the statement cuts but before due date- pay entire balance.
During the dates between the Due date and Statement date buy a Coffee on it.
Now the $5 balance will be reported to the CRA's.