So I am trying to figure out if I should be carrying a balance on all cards or just one card?
I've been reading around and I'm not sure what to do. I see some things say that you can carry a balance on one card and the rest report zero and it will show that you're still using your credit. Then I've seen that you should be carrying a balance over zero but less than 10% of your limit.
Is this on ALL cards or just less than 10% of your overall CC limits?
I currently use a few different cards for their rewards but pay them off weekly and by statement date they are reporting a $0 balance 99% of the time. However 3 other cards do report a balance as I'm still paying them down.
Wha'ts the best way you all have seen to maximize the credit profile and payments towards the cards?
I just want to point out that there's a difference between carrying a balance, and reporting a balance. Carrying means you rollover a balance from one month to the next, meaning you'll be paying interest and diluting rewards. You don't want to carry a balance. Reporting a balance is what you want to do. Reporting a balance means using your card as much as you want and whatever balance is posted by the cycle closing date is what is reported to the bureaus (with the exception of a few lenders, such as US Bank, who reports at the end of the month). Whatever balance is reported must be paid in full before the next cycle closes to avoid incurring interest.
Now, to maximize scores, you want to implement AZEO, or All Zero Except One. This means using all your cards as much as you want, but making sure you pay them all down to zero balance BEFORE their respective due dates, EXCEPT for one bankcard (and by bankcard I mean from a major bank such as Wells Fargo, Citi, Capital One, Chase, etc.). On this one card you would leave a small $10-$20 balance before the cycle closes. Once the cycle closes and your new statement is generated, then you can simply pay off that small $10-$20 balance right away. Rinse and repeat. This way you are maximizing scores, rewards, and you are NOT paying interest.
@OmarGB9 wrote:I just want to point out that there's a difference between carrying a balance, and reporting a balance. Carrying means you rollover a balance from one month to the next, meaning you'll be paying interest and diluting rewards. You don't want to carry a balance. Reporting a balance is what you want to do. Reporting a balance means using your card as much as you want and whatever balance is posted by the cycle closing date is what is reported to the bureaus (with the exception of a few lenders, such as US Bank, who reports at the end of the month). Whatever balance is reported must be paid in full before the next cycle closes to avoid incurring interest.
Now, to maximize scores, you want to implement AZEO, or All Zero Except One. This means using all your cards as much as you want, but making sure you pay them all down to zero balance BEFORE their respective due dates, EXCEPT for one bankcard (and by bankcard I mean from a major bank such as Wells Fargo, Citi, Capital One, Chase, etc.). On this one card you would leave a small $10-$20 balance before the cycle closes. Once the cycle closes and your new statement is generated, then you can simply pay off that small $10-$20 balance right away. Rinse and repeat. This way you are maximizing scores, rewards, and you are NOT paying interest.
Chase shouldn't be used as the one. When the balance zeros they report it.
@Brian_Earl_Spilner wrote:
@OmarGB9 wrote:I just want to point out that there's a difference between carrying a balance, and reporting a balance. Carrying means you rollover a balance from one month to the next, meaning you'll be paying interest and diluting rewards. You don't want to carry a balance. Reporting a balance is what you want to do. Reporting a balance means using your card as much as you want and whatever balance is posted by the cycle closing date is what is reported to the bureaus (with the exception of a few lenders, such as US Bank, who reports at the end of the month). Whatever balance is reported must be paid in full before the next cycle closes to avoid incurring interest.
Now, to maximize scores, you want to implement AZEO, or All Zero Except One. This means using all your cards as much as you want, but making sure you pay them all down to zero balance BEFORE their respective due dates, EXCEPT for one bankcard (and by bankcard I mean from a major bank such as Wells Fargo, Citi, Capital One, Chase, etc.). On this one card you would leave a small $10-$20 balance before the cycle closes. Once the cycle closes and your new statement is generated, then you can simply pay off that small $10-$20 balance right away. Rinse and repeat. This way you are maximizing scores, rewards, and you are NOT paying interest.
Chase shouldn't be used as the one. When the balance zeros they report it.
That's right. My bad. Scratch that.
@OmarGB9 wrote:I just want to point out that there's a difference between carrying a balance, and reporting a balance. Carrying means you rollover a balance from one month to the next, meaning you'll be paying interest and diluting rewards. You don't want to carry a balance. Reporting a balance is what you want to do. Reporting a balance means using your card as much as you want and whatever balance is posted by the cycle closing date is what is reported to the bureaus (with the exception of a few lenders, such as US Bank, who reports at the end of the month). Whatever balance is reported must be paid in full before the next cycle closes to avoid incurring interest.
Now, to maximize scores, you want to implement AZEO, or All Zero Except One. This means using all your cards as much as you want, but making sure you pay them all down to zero balance BEFORE their respective due dates, EXCEPT for one bankcard (and by bankcard I mean from a major bank such as Wells Fargo, Citi, Capital One,
Chase, etc.). On this one card you would leave a small $10-$20 balance before the cycle closes. Once the cycle closes and your new statement is generated, then you can simply pay off that small $10-$20 balance right away. Rinse and repeat. This way you are maximizing scores, rewards, and you are NOT paying interest.
Yes, that is what I meant. I do not want to pay interest. I just meant to have them reporting a balance prior to me paying it off
3 of my cards do have balances that will be reporting and unfortunately getting interest, but I am working on paying them down.
None of course are the big banks, so I assume I should run a $10 +/- balance on my Capital One card then pay it off ?
Yep, that'll do it. Although, like previously said, the AZEO thing is really only necessary when you've got a big app coming up (mortgage, car, HELOC, etc) That thing is maddening to try and maintain month after month... but that's just me. There are some credit management sorcerers here 🤣
@socalchef00 wrote:
@OmarGB9 wrote:I just want to point out that there's a difference between carrying a balance, and reporting a balance. Carrying means you rollover a balance from one month to the next, meaning you'll be paying interest and diluting rewards. You don't want to carry a balance. Reporting a balance is what you want to do. Reporting a balance means using your card as much as you want and whatever balance is posted by the cycle closing date is what is reported to the bureaus (with the exception of a few lenders, such as US Bank, who reports at the end of the month). Whatever balance is reported must be paid in full before the next cycle closes to avoid incurring interest.
Now, to maximize scores, you want to implement AZEO, or All Zero Except One. This means using all your cards as much as you want, but making sure you pay them all down to zero balance BEFORE their respective due dates, EXCEPT for one bankcard (and by bankcard I mean from a major bank such as Wells Fargo, Citi, Capital One,
Chase, etc.). On this one card you would leave a small $10-$20 balance before the cycle closes. Once the cycle closes and your new statement is generated, then you can simply pay off that small $10-$20 balance right away. Rinse and repeat. This way you are maximizing scores, rewards, and you are NOT paying interest.Yes, that is what I meant. I do not want to pay interest. I just meant to have them reporting a balance prior to me paying it off
3 of my cards do have balances that will be reporting and unfortunately getting interest, but I am working on paying them down.
None of course are the big banks, so I assume I should run a $10 +/- balance on my Capital One card then pay it off ?
Well you can run as much as you want through it, just be sure a few days before the cycle ends that it is paid down to +/- $10 and stop using it until the new statement is generated.
Since AZEO is so much work, I've just been using my Apple Card to 0% finance whatever the latest phone or toy is. Someone in the family always needs something. That way the rest of my cards just get auto paid in full each month.
Most of what you asked has been covered. If you dont want to pay interest. Then dont run balances unless you really need to. AZEO is so you dont get hit with the no cards reporting penalty. Charge things on all your cards. Just pay them all down before the statement cuts and leave one with $20. Then pay it after it posts. No interest. AZEO isn't hard. Been doing it since BK (6yrs) and I have not paid 1 cent in interest and have gained thousands in CB and rewards. I have desktop shorcuts on my screen to each creditor renamed to the statement date. Turn on the computer and there they sit. Ok Cap1 is getting ready to report. Pay it. Done. Why have a CB card and then pay interest? You just lost your profit to interest. Make sense?
