When Should My Cards Be Paid Off?

[Anonymous]

After scouring this forum I haven't really figured out the best way to manage my credit cards.

A few people say leave a balance of 5%-8% of your CL on your card from month to month while some say pay the entire balance off?

Which is the better method in regards to aiding your FICO score.  If I pay the entire balance off, when should it be paid by, I am confused as to when the balance actually is reported to the Credit Bureau's.

[trumpet-205]

When people say leave a balance to report, they mean pay most of what you owe before billing cycle end. Always pay in full right after the statement.

Example -

I owe $50 dollars on my credit card. My billing cycle ends 3 days afterward. I pay $45 dollars before billing cycle ends, so that my balance (what I owe) on my statement is $5 instead. Whatever balance is on your statement is reported to CRA, with the exception of few banks.

[clocktick]

Yes, exactly.  The entire balance is still paid off but just in 2 payments.  Everything still ends up paid in full without any interest.

[Smug]

On each card? Or just one card? All Cards?

[clocktick]

Less than half.

[haulingthescoreup]

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@Smug wrote:
On each card? Or just one card? All Cards?

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Ideally on just one card. Max, fewer than half of your open CC's.

If you have multiple open installment/ mortgage accounts, you should let as few CC's report a balance as possible.

People with student loans, one per semester, get nailed on "too many accounts with balances" due to the way their SL's report.

[Smug]

Thank you