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Is it better to maintain a small balance on credit cards?

Mad12345
Contributor

Re: Is it better to maintain a small balance on credit cards?

Cap


@KLEXH25 wrote:

@Mad12345 wrote:

I have 2 prepaid and 5 others. Thank you for your reply. I am trying to rebuild after bankruptcy, but i didn't really have a good understanding of how to use/build credit before. I have seen some very good info on this site. 


So of those 7 cards, 2 are prepaid? What are the other 5 cards? Are they store cards? Bank cards? Major credit cards? It's important that the one card you allow to report a balance is a major credit card or bank card. This will give you the best scores. Of course it's ok to use your cards as usual and pay them as needed. Scores can change month to month. What are you scores now?


My chapter 13 was discharged last June. My FICO 8 for EXP-695  EQF-678  TU-661. I have a Capital One card ($750 cl), Credit One card (1000 cl), First Premier card ($750 cl), Target red card ($300 cl), and CFNA tires plus ($2400 cl). The only one I have a balance on is first Premier. They charge an $8 per month fee that shows up after they report. i pay it as soon as I see it.
Message 11 of 14
Mad12345
Contributor

Re: Is it better to maintain a small balance on credit cards?


@Mad12345 wrote:

Cap


@KLEXH25 wrote:

@Mad12345 wrote:

I have 2 prepaid and 5 others. Thank you for your reply. I am trying to rebuild after bankruptcy, but i didn't really have a good understanding of how to use/build credit before. I have seen some very good info on this site. 


So of those 7 cards, 2 are prepaid? What are the other 5 cards? Are they store cards? Bank cards? Major credit cards? It's important that the one card you allow to report a balance is a major credit card or bank card. This will give you the best scores. Of course it's ok to use your cards as usual and pay them as needed. Scores can change month to month. What are you scores now?


My chapter 13 was discharged last June. My FICO 8 for EXP-695  EQF-678  TU-661. I have a Capital One card ($750 cl), Credit One card ( $

@Mad12345 wrote:

Cap


@KLEXH25 wrote:

@Mad12345 wrote:

I have 2 prepaid and 5 others. Thank you for your reply. I am trying to rebuild after bankruptcy, but i didn't really have a good understanding of how to use/build credit before. I have seen some very good info on this site. 


So of those 7 cards, 2 are prepaid? What are the other 5 cards? Are they store cards? Bank cards? Major credit cards? It's important that the one card you allow to report a balance is a major credit card or bank card. This will give you the best scores. Of course it's ok to use your cards as usual and pay them as needed. Scores can change month to month. What are you scores now?


My chapter 13 was discharged last June. My FICO 8 for EXP-695  EQF-678  TU-661. I have a Capital One card ($750 cl), Credit One card (1000 cl), First Premier card ($750 cl), Target red card ($300 cl), and CFNA tires plus ($2400 cl). The only one I have a balance on is first Premier. They charge an $8 per month fee that shows up after they report. i pay it as soon as I see it.


1000 cl), First Premier card ($750 cl), Target red card ($300 cl), and CFNA tires plus ($2400 cl). The only one I have a balance on is first Premier. They charge an $8 per month fee that shows up after they report. Ipay it as soon as I see it.

 

Message 12 of 14
Luna3323
New Contributor

Re: Is it better to maintain a small balance on credit cards?

@Mad12345 I don't carry a balance on my Cap1 but i know they always report around the same date so i carry a balance until then, then pay off before statement closes. If they are too close together, you can change the due dates.


Message 13 of 14
Birdman7
Super Contributor

Re: Is it better to maintain a small balance on credit cards?

@Mad12345 If you’re new and you need to learn, you need to follow @AllZero ‘s advice. Read the Scoring Primer. It’s also linked at the top of my signature.

-Our Community’s updated scoring wisdom: Link to Scoring Primer.
-For Negative Reason Codes see: CassieCard’s Score Factors thread.
-ccquest’s workbook to calculate metrics for you: Link to Workbook.

Correct Ag.Util. under 5% all times. (Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.

RIP:

(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 14 of 14
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