In process of rebuilding and need your input

[Anonymous]

I filed a Chapter 7 BK approximately 7 years ago. As of November this year (2011) I have made an attempt to try and rebuild my credit. I went out and got approved for a Visa Bank of America Rewards Card with a $500 CL. So far, so good. I've been paying in advance, weeks before the bill is actually due. However, I read somewhere that when you pay weeks before the due date of your bill can raise your FICO score considerably. Is this true or false? What else can I do to increase my score/improve my overall 500 score? So far, I only have one CC. Nothing else. Typically, how long does it take to reach the 700's? Any information is greatly appreciated. Thank you kindly.

[pizzadude]

Hi, welcome to the forums !!

Sounds like you have a good handle on CC usage, which is great.   I would recommend opening at least 2 other CCs, and only letting one CC report a balance at a time, typically less than 10% of your CL.   This will optimize your the %Utilization aspect of your FICO score. 

Do you have any other negatives on your CR besides the BK ?   I know that some people have reported scores approaching 700s with a old BK still reporting, so I think it is possible....

[Anonymous]

Hello Pizzaguy and thank you for your response to my inquiry. The BK is the only thing on my credit. I have not tried to reestablish my credit since filing BK. However, just recently in Nov I applied for the BofA Rewards Card and they approved with 500 CL. Folks keep telling me to let a balance of 1-9% remain when the statement cuts?? I am totally confused and need clarification. I thought by paying off the total balance before its due date was a good thing. I go online and check my statement and pay it off before it even hits the mail. Currently, I have a statement online showing I owe $124 which is due by Jan 13th. The statement hasn't hit the mail yet and is monies charged for Dec. Am I supposed to pay all of it and leave $45 remaining? I need help understanding this ordeal. lol

[GoodCredBen]

you should have ONLY one of your cards showing a balance of 1-7%....  

If you had multiple cards, then you would benefit more from pif, but since this is your only card (not 100% sure) i would leave the balance on it to show use. 

should give you the best results  

[pizzadude]

It seems counterintuitive, but FICO scoring likes a small balance on your CCs, typically less than 9%.   So for a $500 CL card, you could try letting $45 report, to see if your FICO slightly increases.    You also need to open at least 2 additional CCs, and let them both report zero balances.    If you don't want to apply for a bankcard, you could try for store cards, many of them are fairly easy to obtain and BK friendly.

[GoodCredBen]

each month you would probably see 5-10 pts per card. 

YMMV though

[Booner72]

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@Anonymous wrote:

Hello Pizzaguy and thank you for your response to my inquiry. The BK is the only thing on my credit. I have not tried to reestablish my credit since filing BK. However, just recently in Nov I applied for the BofA Rewards Card and they approved with 500 CL. Folks keep telling me to let a balance of 1-9% remain when the statement cuts?? I am totally confused and need clarification. I thought by paying off the total balance before its due date was a good thing. I go online and check my statement and pay it off before it even hits the mail. Currently, I have a statement online showing I owe $124 which is due by Jan 13th. The statement hasn't hit the mail yet and is monies charged for Dec. Am I supposed to pay all of it and leave $45 remaining? I need help understanding this ordeal. lol

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You want to show a balance bc it shows you are using your credit responsibly.  If I were you, I'd get another card, and have that one report a zero balance.  You want at least 2, maybe three, to continue to rebuild after the BK.  So ONE shows small balance (5.00-90.00).  Play around each month and see which balance gives you the max FICO points.