fico score boost and paying CC (when and how much)

[Anonymous]

Hi All,

   I recently (April) applied for a mortgage and was approved but since we went new construction, the lender would have to pull credit again in late Sept.  My mid score at the time was 594 which was cool for a VA loan. So in trying to increase my scores, I applied for a secured credit card thru Orchard Bank.

Now I have questions on how best to use and make payments on the card to get most boost in my fico score.  My mid score now is a 624 which is great, would like to reach 650 by Sept.  My statement comes out on the 21st and I pay my balance down to zero every month before my statement due date so my payment show on time but they dont report to the credit agencies till the end of the month so essentially Im making two payments a month to keep my balance at zero for payment history to the credit bureau.

Orchard bank does show a high balance on my reports, so even though my balance is zero they know Im using the card and maxing it out and paying it down to zero.

Is this the best way to get the most out of the card and my scores or should I do something different?

Thanks

[Anonymous]

As long as utilization is low at the time the creditor updates the report your scores should not suffer.  Continue to make sure that your reported balance due is low which I believe you are saying you do. 

For example:  Cap One payment is due on the 9th (but I usually send the minimum way before then just to make sure I did that much).  Cap One sends my update to the bureaus around the 15th.  I try to make sure the balance is paid down a couple of days before the 15th so my utilization will report low.  If I fail to do that - I see a score drop because my balance increased by ??%.

Congrat's on the new home and wish you the best of luck!

Message Edited by Davis12906 on 07-26-2008 07:11 PM

[Anonymous]

Davis,

    Thanks for the reply, yes we are essentially doing the same thing payment wise.  I wonder if getting another card and doing the same would make a greater improvement. My credit debt is a student loan, car payment, and the one and only secured credit card......should I get another?