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Should I pay bal down before statement cuts?

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Senior Contributor

Re: Should I pay bal down before statement cuts?


@Birdman7 wrote:
But IMHO, bottom line is utilization affects scores. So if I lower my utilization prior to asking, I have a better chance. Not trying to impress a lender by saying I can repay early. Trying to maximize and optimize scores by lowering utilization. (of course I never go over 8.9% anyway so it doesn’t matter.)

Exactly. A person wants all the scoring help they can get for the best possible rates, and a higher score in most cases equals a lower APR.  

Which is what I'll do just before a planned app. However, i do not see the need to continue this practice on a regular schedule.

 

 

@Saeren wrote:

The lender already has all the data they need to make that decision except possibly a fresh credit pull and your current income. Pay before the statement cuts, pay after it cuts, doesn't matter as long as you pay. It's just much more work to pay before it cuts. 


Which is why I don't really like burining a HP for a CLI, as we already know it's the same info for both SP and HP. Not to mention most increases are rather small compared to CL's on new accounts. So if I'm gonna burn a HP, I would rather save it for the more important account.






Message 21 of 28
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Contributor

Re: Should I pay bal down before statement cuts?

My rebuild started in March of last year with the Propel (SL 3k).  Six months later, I got Discover (SL 2750), and I've had the Cash Magnet (SL 10k) for about 2 months now.

 

So far, I've received a 1300 CLI on the Propel, and a measly 250 on the Disco (although I was able to get a SP CLI of 2500 immediately after).

 

I let all my balances report, and PIF.  The only time I've made mid-cycle payments was when I needed breathing room for my spend (and even then, I only paid as little as necessary).  I've never been concerned with my util (cards have been maxed (> 90%) on multiple occasions, especially at first when there was less available credit), and don't practice AZEO (I actually ensure all cards report a balance). 

 

I only concern myself with my score when I'm about to app.  If I have a creditor that gets spooked by a transient util spike, I'd prefer to learn about it sooner, rather than later.

 

This is just my experience, and not meant as any sort of advice.  My CLIs and current limits have exceeded expectations, and are more than adequate for my needs, so it's worked for me.

Wells Fargo Propel: 4300 (3-19)
Discover it: 5500 (9-19)
American Express Cash Magnet: 10,000 (12-19)
Chase Freedom Unlimited: 8500 (4-20)
Citibank Double Cash: 5300 (7-20)
FICO 8 EX 736 (9-1-20) EQ 776 (8-14-20) TU 730 (8-14-20)
INQ EX 4/12, 8/24 EQ 2/12, 4/24 TU 0
Message 22 of 28
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Super Contributor

Re: Should I pay bal down before statement cuts?


@Birdman7 wrote:
Application or request is semantics, it’s still an application for an extension of existing credit.

I don’t advocate micromanaging just prettying up your file before you seek new credit or an extension of existing credit because a higher score is going to give you a better chance.

Micromanaging is stressful it’s definitely not something to be done all the time unless that’s just what someone wants to do.

I’m not talking about negative impact of paying off, I’m talking about positive impact of paying down on your score.

All other things constant, would one say you don’t have a better chance of a CLI with a higher score?

I'm not convinced that CLIs weigh scores heavily versus payment history with the existing creditor and on other accounts. Look how many people get denied CLIs and the letter cites an old score. No amount of prettying things up is going to change the internal data. People stress way too much about all the tricks to make their files look pretty and I'm not convinced at all that creditors can't see right through it anyway. Use and pay and go on with your life. Stress when you're getting a mortgage, not a credit card or a CLI. 




Message 23 of 28
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Super Contributor

Re: Should I pay bal down before statement cuts?

I’m not gonna stress at all but I’m gonna give myself the best chances in my opinion.
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.



RIP:



 

 

 

 




Updated Oct 2020, unless otherwise noted.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/mature/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record to start.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 24 of 28
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Super Contributor

Re: Should I pay bal down before statement cuts?


@Birdman7 wrote:
I’m not gonna stress at all but I’m gonna give myself the best chances in my opinion.

Except there's no evidence to prove that you are. It can very easily be argued that someone who doesn't make use of their float actually doesn't need any additional credit. 🤷‍♂️ 




Message 25 of 28
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Super Contributor

Re: Should I pay bal down before statement cuts?

People who need credit don’t get it typically.
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.



RIP:



 

 

 

 




Updated Oct 2020, unless otherwise noted.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/mature/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record to start.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 26 of 28
Highlighted
Super Contributor

Re: Should I pay bal down before statement cuts?

IMHO a higher score is going to improve your odds of a credit limit increase, all other things remaining constant. I find it hard to find a convincing argument around that, respectfully.

Sure many other things are taken into account, but again all other things remaining constant, the person with a higher credit score is more likely to be approved IMHO.
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.



RIP:



 

 

 

 




Updated Oct 2020, unless otherwise noted.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/mature/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record to start.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 27 of 28
Highlighted
Valued Contributor

Re: Should I pay bal down before statement cuts?

I prefer to pay haphazardly. Always on time. But sometimes mid cycle. Keeps my lenders on their feet.

I agree with those on using float. It's still weird to me as I too tried to AZEO once...but it was too much work. To be honest, I generally mid cycle pay when I want to make sure I have the next 2 weeks finances in order before moving the excess into investments or savings. Just a piece of mind thing.
Bourbon and bow ties.
Current Cards:



2020 Goals:
$100K total CL (through organic/soft pull growth; COMPLETE!)
750+ across bureaus
No real goal cards for now
Garden Forever.
Message 28 of 28
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