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Paying card before first statement,question

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ShiningDown
Frequent Contributor

Paying card before first statement,question

  I have a discover card that I got on dec 10th.

  I made my first purchase on Dec 29th.

  I have spent 272.00 worth on bills and purchases as of January 6th.

  Question is...... If I make a payment before my statement shows up on January 23rd will it still show utilization as 272.00

  or will it only show what I haven't paid. I was hoping to show a lower utilization for scorning purposes. I'm having a hard time explaining this but maybe someone knows     what Im trying to say,LOL 

Message 1 of 10
9 REPLIES 9
MarineVietVet
Moderator Emeritus

Re: Paying card before first statement,question


@ShiningDown wrote:

  I have a discover card that I got on dec 10th.

  I made my first purchase on Dec 29th.

  I have spent 272.00 worth on bills and purchases as of January 6th.

  Question is...... If I make a payment before my statement shows up on January 23rd will it still show utilization as 272.00

  or will it only show what I haven't paid. I was hoping to show a lower utilization for scorning purposes. I'm having a hard time explaining this but maybe someone knows     what Im trying to say,LOL 


Any payments you make before the statement posts will be reflected on the reported balance. So the more you can pay before the statements posts the lower your utilization will be.

 

 

 

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Message 2 of 10
ShiningDown
Frequent Contributor

Re: Paying card before first statement,question

That's good news for me. Thanks MarineVietVet and thank you for putting my question in the correct topic. 

Message 3 of 10
IOBA
Senior Contributor

Re: Paying card before first statement,question

Just a note - Discover card, for a while during the credit crisis, was updating CR every week to every two weeks.    I don't know if they are still doing that or not.  I am starting to carefully watch my credit reports to see...  Smiley Happy

Message 4 of 10
Revelate
Moderator Emeritus

Re: Paying card before first statement,question


@IOBA wrote:

Just a note - Discover card, for a while during the credit crisis, was updating CR every week to every two weeks.    I don't know if they are still doing that or not.  I am starting to carefully watch my credit reports to see...  Smiley Happy


Wierd, that had to be a non-trivial expense.  Any idea why they would've if it was just them, and not everyone?




        
Message 5 of 10
RobertEG
Legendary Contributor

Re: Paying card before first statement,question

+1

I would only add that, while it is always best to keep util low, it is not a high priority to "tweak" your score each month to obtain max credit score.

You are scored on % util based only on your current reported util, not on any prior % util.  So a higher util last month has no effect on your util the next month.

Some like to maximize their score each month, and that is fine, but the practical importance is to maximize your score just prior to when you actually need your score to app for new credit or a new business transaction that looks at your current score.

Message 6 of 10
Anonymous
Not applicable

Re: Paying card before first statement,question

I have a question regarding playing the utilization game so often discussed here.  Okay, I understand that FICO does not necessarily retain utilization in its memory -- but how does this scenario play out in real FICO life = say, you play the utilization game and your FICO score spikes up from 710 to 735, come next month is it possible to further spike from 735 upward by again maximizing utilization?  It seems to me that if you graduate from one current FICO score to another higher FICO score and, there are no negative deterrents to take you backwards as time progresses into the new month, you should not lose that 735 score (do you?), but rather, shouldn't you be able to spike the score up higher by maximizing utilization again? 

 

Sorry to hijack this thread from the OP's original question but, maybe other inquiring minds want to know the answer to this question too? 

Message 7 of 10
IOBA
Senior Contributor

Re: Paying card before first statement,question

Back to the Discover card thread - I just checked a before statement and a post statement credit report.  Both reported the same balance ($132 balance/8k CL).  

 

It could be that Discover is reported just one day a month, for everyone, regardless of what the balance is or when the statement ends.   I will be watching diligently to see when the payment is updated on the CR.

 

*****

 

discernment - your question doens't have a black and white answer since so many things factor into the FICO score game.  In theory, you could keep increasing your score as each month passes.   But eventually, you will rebucket.  One of the scoring bucket is AAofA 5-8 yrs.  So you can spike from 5 yrs to 8 yrs.  But at 8 yrs, you rebucket and now you are in a new group of people.  You will probably see a score drop, just becuase FICO is now comparing you to a different group of people.   Another variable is something aging off of your credit report, which would affect your AAofA.   

Message 8 of 10
Anonymous
Not applicable

Re: Paying card before first statement,question


@IOBA wrote:

 

@Anonymous - your question doens't have a black and white answer since so many things factor into the FICO score game.  In theory, you could keep increasing your score as each month passes.   But eventually, you will rebucket.  One of the scoring bucket is AAofA 5-8 yrs.  So you can spike from 5 yrs to 8 yrs.  But at 8 yrs, you rebucket and now you are in a new group of people.  You will probably see a score drop, just becuase FICO is now comparing you to a different group of people.   Another variable is something aging off of your credit report, which would affect your AAofA.   



Thank you IOBA.  I appreciate your response.  I am glad you said that: "In theory, you could keep increasing your score as each month passes;" because, with all the talk of FICO retaining NO memory, I was concerned that after acheiving a higher score one month after playing the utilization game, that the next month you would automatically go back to where you'd been originally and lose everything gained.  Thank you for your clarification, I really appreciate it. 

Message 9 of 10
IOBA
Senior Contributor

Re: Paying card before first statement,question

No problem.  Smiley Happy

Message 10 of 10
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