Pay in Full or Leave balance

[terren2000]

I keep hearing comflicting reports on this.

So can some1 go over this with me one more time.  Do I pay in full each month?  ive been hearing that alot.  but if I do that, the balance will stay at a zero.

So I should keep all credit cards at zero, 0 % utilization?

Last time i did the score similation, I score jump as my utilization lowered.  But as soon as I took utilization to 0, the score similator showed my score drop significantly.

[haulingthescoreup]

Here you go:

Have all cards report a $0 balance, except for one. To control what is reported, you pay them off (or down) several days before the statement is due to drop, so that the balance on the statement is $0. If it's the card that you're allowing to report a balance, pay off all but $10 or $20, whatever, several days beforehand, let that figure report, and then pay it off immediately. <-- This last step is frighteningly easy to forget!

Exceptions to paying right before the statement date: all US Bank cards and HSBC/ Orchard bank (not store) cards report your balance as of the last business day of the month, regardless of what's on your statement. So do your early payoff thing several days before the last business day of the month.

As soon as the statement posts, or for US Bank and HSBC/ Orchard banks cards after the last business day of the month, you can start using the cards again. The accrued charges will go on the next statement, or at any rate, you'll pay them off before the next statement.

You can use credit as much as you want without score penalties if you do this. It's a hassle at first, but by now I just think of my statement dates as due dates and time my payments accordingly.

Once my scores got up over 780, I think it was TU that stopped penalizing me for letting all report $0, while EQ still dinged me.

If you have a balance transfer or 0% purchase offer etc that you're paying off, that can be your card that reports.

[terren2000]

thanks ^^^^^

[Noctilum]

What do you do if you only have one credit card, such as myself, lol   Do you just pay it off? 

[Anonymous]

I think I would let it report a small balanced less than 9% every other month. Ray

[marty56]

Always PIF, it is the reported balance that efefcts your score, not whether you PIF or not.  IMHO a $1 balance is just as good as a full 9% and remember some CCCs look at your CR each month so it never hursts to have small balances being reported. 

Also always pay at least the minimum paymenst and soon after the statement date as you can.  while it may not change your FICO score, it  will insure you are never late.  paying $.01 less then is due will make it just as late, FICO score wise as not paying anything.

[haulingthescoreup]

---

@Corvidae wrote:

What do you do if you only have one credit card, such as myself, lol   Do you just pay it off? 

---

We had one other member with only one card (you guys are rare, lol), and I think she found that she did better to let the small balance report (and then immediately pay it off, of course.)

But we're always happy to have someone (= you) be a guinea pig and report back!

[mocha82]

+100.  Excellent explanation.

---

@haulingthescoreup wrote:

Here you go:

Have all cards report a $0 balance, except for one. To control what is reported, you pay them off (or down) several days before the statement is due to drop, so that the balance on the statement is $0. If it's the card that you're allowing to report a balance, pay off all but $10 or $20, whatever, several days beforehand, let that figure report, and then pay it off immediately. <-- This last step is frighteningly easy to forget!

Exceptions to paying right before the statement date: all US Bank cards and HSBC/ Orchard bank (not store) cards report your balance as of the last business day of the month, regardless of what's on your statement. So do your early payoff thing several days before the last business day of the month.

As soon as the statement posts, or for US Bank and HSBC/ Orchard banks cards after the last business day of the month, you can start using the cards again. The accrued charges will go on the next statement, or at any rate, you'll pay them off before the next statement.

You can use credit as much as you want without score penalties if you do this. It's a hassle at first, but by now I just think of my statement dates as due dates and time my payments accordingly.

Once my scores got up over 780, I think it was TU that stopped penalizing me for letting all report $0, while EQ still dinged me.

If you have a balance transfer or 0% purchase offer etc that you're paying off, that can be your card that reports.

---