So I'm still overexcited and stoked about having done so well to get my credit score moving in a great direction this past few months and being approved for a few cards I never expected to get... (like amex anything)
My biggest issue has been utilization. I've made great strides in this department especially with the new lines of credit more than doubling my previous overall amount available.
That said, I still worry about keeping util low.
Right now, it's a bit of a joke because I'll pay my cards every single day if I've used them, sometimes I'll send two payments in a day.
Should I just keep track of when each card reports to the CRAs and then make my payment a day or three beforehand? I see a lot of posts about statement dates and due dates... But the date I think I should worry about is the report to credit agency date, no?
How do you guys do it? I'm still in the overzealous stage and I know I'll calm down about it soon... But right now I want to make my best effort to look amazing every time a report comes out. I pay my BCP card a LOT because it's got a SL of $1000 and I don't want to see high util bc of that.
@TheFIGuy wrote:Adding to one of the GOAT's @longtimelurker, you could align all your CC due dates on a similar day (other than USB). This will help with reporting and timing future CC applications.
Also, I'm a bit of a redundancy guy, but I auto-pay all my CC's on the same day three business days before their actual due date. If any issues occur, I have time to call the financial institutions and correct the mistake.
Thank you. I use YNAB for my budget so the cash is always set aside for every new CC purchase I make. I finally have gotten to the point where all my bills (except for CC's) are on autopay. It's a nice feeling. I think it's time to get the CC's on the auto-pay also... after seeing if I can adjust the due dates to be a little more cohesive. I've had like 11 inquiries this month alone so it'll be a while before I app a new CC.
@longtimelurker wrote:The report to credit agency date isn't that important for utilization concerns, it's not real-time data that is reported. Nearly all (main exception US Bank/Elan) report the statement balance, regardless of the date they send it to the agencies. (US Bank reports balance on the last business day of the month or something like that)
Paying regularly before the statement cuts, especially two or more times a day, only makes sense in a few situations.
1) Utilization is very high and there is a fear of adverse action by one or more lenders. So don't want to add to the balance.
2) Major application coming up and need to maximize score (AZEO). Some people do this all the time, which costs in that you are not getting the advantage of a float, for little gain
3) Psychological/budgeting, if you hate the idea of having any debt.
Once you have an old thick profile, it's much easier just to PIF once the statement cuts.
I didn't realize they're just sending in a statement balance typically. If that's true (and I have no reason to doubt it)....... I guess you're right. I'm being #3 and I should just pay to zero when the statement comes.... I'm earning interest (whatever pittance it is) on that money anyway. I don't have anything with US Bank yet, but I do want their Cash Plus card.. so I will remember this information for the (far) future! Thank you.
@TheFIGuy wrote:
Hello fellow YNABer, I have been using YNAB for many years now and cannot see a way to finance without it. If you ever have specific questions regarding YNAB and CC's shoot me a PM. I would be happy to help!
Awesome! I been doing it since mid August this year. I've never felt so organized with money before and my wife gets an enormous peace of mind by getting to see and understand where all the money goes. Huge relief for us both. I've been through all the videos by Nick True and thats been a great help... But it's nice to have an additional resource. Thank you!
Your story sound similar to mines when I start working towards bring down my utilization(realizing that's the only thing that was affecting my credit). I start writing down all my cards due date & statement dates along with setting up notifications reminders several days prior my due dates so I can try strategize lowering my aggregated thresholds before the end of statement date. I know sometimes it make you feel that your are a lil obsess with keeping a low utilization but the reward seeing your score rise is priceless.
