New credit w/5 CC

[RobynJ]

I have posted my journey on another post but have a question about the new CC I recently acquired. I have a 0 score still (started building back in February) so I have another 4 months until a score will generate I am to understand. My question is should I let a small balance report on each card before PIF or should all but one carry a balance before PIF? I have seen different ideas on here to which is a better option. Please advise. 

[Remedios]

It's not relevant from scoring perspective since score won't be generated until later. 

Balances are still reported, regardless of having a score. 

AZEO might gain you a few points, but AZEO is pointless and time consuming. You're already worried about balances one month into your journey, so imagine how you will feel when one additional card reports and you start feeling like sky is about to fall, you start thinking your cards are about to get closed for doing what 99.9% of population does...wait for statement then pay,  and you will feel that way.

Unfortunately, there isn't any way to stop AZEO propaganda, so here we are, worried about score when there even isn't one. 

[RobynJ]

@Remedios 
I just want to make sure that I do this right is all. The score will come I now I am more thinking about how the CCC look at it for CLI in the future. So say I pay them prior to statement does that make them shy away from me or does it look better to them if I leave a balance until after statement and pay. Do it with all or less? Man I messed my credit up terribly back in 08 and have a clean slate so I just want to pursue the righteous path is all. Thanks

[coldfusion]

AZEO is really only useful if someone is clawing and scratching to try to squeeze out every last possible FICO point to get over some relevant threshold like a mininum FICO score needed to get the lowest possible rate on a mortgage where organically they are just a few points shy. 

If you aren't in that senario just pay off each of your balances in full once they report each month and let things take care of themselves naturally.  You'll save yourself a lot of angst and establish a track record of demonstrating to the wider audience that you actually use your credit while paying it off responsibly. 

[Remedios]

Righteous path (according to me) is use cards, wait for statement, pay the bill..

They won't shy away from you if you pay before the statement, most lenders don't complain about when they get the money as long as they get the money. 

Using cards and paying them is what eventually might help with increases, so it's really about paying them,  not about when you pay them (as in before or after statement is ready).  

I personally think you should do whatever you're comfortable with and whatever leads to less stress for you.

Starting over, rebuilding etc is stressful and hard enough without self imposed complications, so make yourself happy first and manage your money in a way that suits you the best. 

If that's paying before statement, go for it. 

[RobynJ]

@Remedios @coldfusion 

Thank you both. I have been doing exactly that, stressing on not spending more then 28% of CL and making sure it was paid prior to statement day (it's a pain in the azz with pending transactions and all). Well I have been using them all the time and making 10+ payments a month to assure I am under the util I always read about in here. 

[Jnbmom]

I agree with the others unless you are trying to squeeze out a few points for a mortgage . AZEO is not worth it , it's time consuming and people stress way beyond what they need to . Use your cards pay when statement  cuts, rinse and repeat . Making 10 payments  a month why, you do not need to that that's way too stressful .

[RobynJ]

@Jnbmom 

I do not have high CL so if I want to use them frequently I don't have a choice in the matter. I could just use my debit but I really want to show responsible use and IMHO to do that I have to use them often in the beginning. Your thoughts?

[Jnbmom]

I still don't think is worth stressing and making multiple payments a month . Not sure what cards you have or your limits . Just because for example have a 300 limit on some  cards you don't have to keep charging and paying . Rotate your cards you don't have to use every card every month that in itself is very stressful .

[RobynJ]

@Jnbmom 

Cap one Platnum $301/$28

Dico $300/$98

Open Sky $200/$5

NavyFCU $1000/$0

Amex Blue (AU) $30,000 /$525