PIF or leave a 1-9% util?

[Anonymous]

which is better for raising FICO PIF everymonth or leaving that 1-9% of a balance on the total credit line?

[Anonymous]

It's better to have a balance, that shows the cards are in use and you are managing credit well.

Note that the balance can be tiny...I have had balances as low as $1 reported to the CRAs.

[John060675]

I have always wondered the same thing. 

So if I PIF each month, then that shows less credit responsibility than leaving a balance?  Could you please maybe elaborate on this a little more?

[Anonymous]

You have to think of FICO gods and Credit Card Companies. You want your FICO to be hard rock and you want to recieve credit line increases at the same time, right?

1.FICO gods want to see repayment history

2.Credit Card Companies want to see usage.

BOTH WANT YOU TO PAY IN FULL EACH MONTH

[doood71]

So when it says too many accounts with balances, we're being penalized for more than the recommended accounts? Or is that not really factored in to the score?

[Anonymous]

I got nailed last month for 10/10 open account with balances. (7% UTL.on revolving) 10/22 total.

This month it will be 6/14 with a 2% utl

1 Mortgage
1 Auto
2 SL's
9 open Credit cards 2 with balances

And we will see what happens.

My theory is that they only want to see 50% of your accounts with balances.

[doood71]

I think I'll try that too, all my cards have 1% utilization or so but it's like 11/17 accounts with balances, but let us know how that turns out for you!

[John060675]

If a CC is used, but a person pays for it ASAP, will it show usage but a balance of $0 for the month?  I PIF each month, but it always shows a balance on my CR for the CC accounts, which puts my utilization around 30%.   

I want to show $0 on my CR, but show usage.  I assume the above will work by just paying before they report.

Thanks,

[Anonymous]

Yes - pay before the next statement cuts or in the case of HSBC before the end of the month.

This was a HUGE finding for me as I had several low limit cards that I PIF the last statement but was killing my UTL. ESP Household bank- the statement date is the 8th and they report the last weekday of the month. That gave me like 10 days to pay the balance?

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@John060675 wrote:

If a CC is used, but a person pays for it ASAP, will it show usage but a balance of $0 for the month? I PIF each month, but it always shows a balance on my CR for the CC accounts, which puts my utilization around 30%.

I want to show $0 on my CR, but show usage. I assume the above will work by just paying before they report.

Thanks,

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[haulingthescoreup]

I don't get it--if we show $0 on the credit report, how do they know that there was any usage? I don't see any place where the creditors say, wow, she beat the heck out of the card this month, but she's paid it all off; we're giving her responsibility points! Is there some way that the CRA's would know that you were using it, if all they get is the $0 balance report?

I'm pretty much at the point where I only have one card in my wallet for a week at a time, with a tank of gas on it and maybe a couple of other things. Then at the end of that week, into the sock drawer it goes, and out comes one of the other 3. Wait till each one reports that $50 or so, and then pay it off before any interest gets posted.

That's why I'm not doing store cards. Can't buy gas at J.Crew! The only reason I reactivated it is because it's my "Christmas card"--a decent supply of green squares on my credit report, but with too many red ornaments for healthy scores. I'm going to use it a couple of months and then start trying to GW a couple of ornaments off. If they won't play, then to heck with it, back in the drawer it goes, and stays.