Optimum Score Boost 9% Util

[kuku4koco]

So, my understanding is that all cards should be paid down to $0 balance, except for 1 and it should be under 9% utilization balance showing... Ok, got that part.  

However, does this also mean all cards should have the same statement cutoff dates and balance due dates?  Because myfico reports twice a month... it can be difficult to make sure this happens every month with 11 cards. (I know I know... whose fault is that right? LOL).

But is it feasible to ask the CC providers to move statement cutoff dates?

[Anonymous]

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@kuku4koco wrote:

So, my understanding is that all cards should be paid down to $0 balance, except for 1 and it should be under 9% utilization balance showing... Ok, got that part.  

However, does this also mean all cards should have the same statement cutoff dates and balance due dates?  Because myfico reports twice a month... it can be difficult to make sure this happens every month with 11 cards. (I know I know... whose fault is that right? LOL).

But is it feasible to ask the CC providers to move statement cutoff dates?

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First, MyFico doesn't report twice a month. It provides alerts whenever a trigger event occurs in your files. That can be quite frequent or not depending on your level of credit activity. Your score itself is in constant flux. A creditor can pull a report today and get one score, and pull the same report tomorrow and get a different score. So, trying to time this for score optimization is futile.

As to your second question, sure, most CCC's will allow you to change the statement date. Good idea if it helps you stay organized, but no real impact on your scores.

[takeshi74]

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@kuku4koco wrote:

However, does this also mean all cards should have the same statement cutoff dates and balance due dates?  Because myfico reports twice a month... it can be difficult to make sure this happens every month with 11 cards. (I know I know... whose fault is that right? LOL).

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That's your call to make.  myFICO does not report twice a month.  As stated above myFICO updates and alerts based on trigger activity.  If you're relying on myFICO monitiring then make sure you understand the triggers and that not all activity with a scoring impact is trigger activity.

http://myfico.custhelp.com/app/answers/detail/a_id/463/~/understanding-what-triggers-fico%C2%AE-3-bu...

Your creditors report to the CRA's on the report dates for your accounts.  When a report is pulled and a score generated they use whatever data is in your report at that time.

If it makes it easier for you to have all those dates synced then you can certainly request your creditors to change them.  However, you can manage reported utilization even if report dates are not all the same.

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@kuku4koco wrote:

So, my understanding is that all cards should be paid down to $0 balance, except for 1 and it should be under 9% utilization balance showing... Ok, got that part.  

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That's generally only suggested for those looking to eke out every possible point and typically when applying for new credit.  That said, some choose to do this all the time but it's really not necessary.  If your reported utilization changes your scores will reflect that change.

I don't worry over it myself because my limits and spend automatically put me under 10%.  I allow whatever cards are reporting balances to report them and I'm ok with my scores as a result.  They could possible be higher but it's not worth the hassle to me.  YMMV depending on your situation and preferences.

[Anonymous]

Thanks so much, Takeshi74, for pointing out that the rule "All $0 except one tradeline and that < 9%" is a short-term strategy for eking out extra points prior to a major pull.  There have been a number of newcomers lately who are under the impression that it is part of any good long-term strategy for improving their scores.  As you observe, it doesn't help with that at all.

Correcting that misperception is important -- not so much because the issue itself is that important, but because it's important for people to grasp the big ideas of how all current and past FICO models work.  Otherwise they are just memorizing random arbitrary rules.  One of the big ideas is that FICO looks at utilization as a current snapshot.  Thus as a long term strategy there's no advantage to monitoring your utilization constantly.  (Though there is of course an advantage to controlling one's spending and living within one's means -- which you also alude to.) 

Thanks again.

[Anonymous]

As a point of reference on that issue, I have a card reporting 23% util and my TU Fico, (my clean report), is 791. It appears to me that the impact of the under 9% approach is minor.