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Should I ...... Pay before statement cuts, or let it recycle?

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Valued Member

Should I ...... Pay before statement cuts, or let it recycle?

So here's the question......
I am in the process of rebuilding...  gardening now, since I just obtained 3 new cards.  Now have 7 accounts  4 revolving, 1 store 3 V/ MC, 1 Disc, a car lease  and a 12 month loan.. with 3 payments left.

My 3 Bureaus are 740's - 770's, but with a short history. Actually Eq 762, TU 744, Exp 776.  I have been making several payments throughout the month & paying accounts off in full or close to it most of the time..... prior to the statement being cut to keep availability high.   
Since the high usage gets reported on when the statement is cut, and I'm paying it down before... it appears as there is not much usage to someone reading the report.   

I am gardening now, ......... should I let some bills recycle even one per month to bring that high usage up?   even to 10 - 20 % ... and then pay it after the bill recycles ?  Would doing so help on rebuilding to acquire new accounts or CLI later... though I may take a temporary hit.   (since I don't plan on applying for anything new for several months).......   please let me know what you think.

Would this help in the building & credit line increase process long term ?

Message 1 of 4
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Highlighted
Valued Contributor

Re: Should I ...... Pay before statement cuts, or let it recycle?


@FishingGuy wrote:

So here's the question......
I am in the process of rebuilding...  gardening now, since I just obtained 3 new cards.  Now have 7 accounts  4 revolving, 1 store 3 V/ MC, 1 Disc, a car lease  and a 12 month loan.. with 3 payments left.

My 3 Bureaus are 740's - 770's, but with a short history. Actually Eq 762, TU 744, Exp 776.  I have been making several payments throughout the month & paying accounts off in full or close to it most of the time..... prior to the statement being cut to keep availability high.   
Since the high usage gets reported on when the statement is cut, and I'm paying it down before... it appears as there is not much usage to someone reading the report.   

I am gardening now, ......... should I let some bills recycle even one per month to bring that high usage up?   even to 10 - 20 % ... and then pay it after the bill recycles ?  Would doing so help on rebuilding to acquire new accounts or CLI later... though I may take a temporary hit.   (since I don't plan on applying for anything new for several months).......   please let me know what you think.

Would this help in the building & credit line increase process long term ?


The highlighted red is true for many creditors but certainly not all.

 

Some creditors will give out CLIs like candy with little to no usage and others like to see a quite a bit of usage.   

 FICO 8
Message 2 of 4
Highlighted
Valued Contributor

Re: Should I ...... Pay before statement cuts, or let it recycle?

I would let them all report then start paying most before statements cut leaving a few to report.

I would rotate which cards report.  Rinse and repeat and stay under 9%

Rebuild started in 2014  -  $100k unsecured credit in 2017  -  $375k unsecured credit in 2020.

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Message 3 of 4
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Super Contributor

Re: Should I ...... Pay before statement cuts, or let it recycle?


@FishingGuy wrote:

So here's the question......
I am in the process of rebuilding...  gardening now, since I just obtained 3 new cards.  Now have 7 accounts  4 revolving, 1 store 3 V/ MC, 1 Disc, a car lease  and a 12 month loan.. with 3 payments left.

My 3 Bureaus are 740's - 770's, but with a short history. Actually Eq 762, TU 744, Exp 776.  I have been making several payments throughout the month & paying accounts off in full or close to it most of the time..... prior to the statement being cut to keep availability high.   
Since the high usage gets reported on when the statement is cut, and I'm paying it down before... it appears as there is not much usage to someone reading the report.   

I am gardening now, ......... should I let some bills recycle even one per month to bring that high usage up?   even to 10 - 20 % ... and then pay it after the bill recycles ?  Would doing so help on rebuilding to acquire new accounts or CLI later... though I may take a temporary hit.   (since I don't plan on applying for anything new for several months).......   please let me know what you think.

Would this help in the building & credit line increase process long term ?


I don't know what you mean by "recycle".

 

Should you carry a balance? No.

 

Should you let one of your cards report a small statement balance before you pay it off? Yes.

 


Total revolving limits 646000 (570000 reporting) FICO 8 EQ 712 TU 739 EX 727

Message 4 of 4
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