Depends when the creditor reports. Usually a day or 2 after statement date. Now onto paying all cards to $0. Never do that because FICO likes at least 1 card with a balance. So your leaving points on the table. We call it AZEO. All Zero Except One. Use your cards all you want. Leave $20 on 1 card. Let it report and then pay it before the due date. Repeat this each month.
There's a saying that utilization has no memory. That means if your score is affected by higher utilization and you lose points, once you pay the utilization back down to where it was you'll regain those points. I've seen this to be true in my own journey. When I've lost points due to utilization, I've gotten them all back once I paid the cards back down.
As another user @FireMedic1 stated you don't want to have every single credit card report a $0 balance. You'll end up getting the $0 balance penalty. For me when all cards simultaneously report $0 I lose 10-15 points on each bureau. I instead practice All Zero Except One (AZEO). Since starting that my scores have gone up or maintained each month. I usually only leave $5 to $10 on 1 card each month.
@Anonymous wrote:I was really good about paying all cards off to 0 for the past several months, however the past 2 months the statement dates hit just before payday and I was unable to wipe the balance to 0. This in turn has hurt my score considerably. I am never late in payment, I've just had a high balance reported the past 2 months. This month, I've paid them all to 0 early so that I can report a 0% utilization rate. How long, if so, will it take my score to recover from the hit
As soon as the card Company report the balance, you should see an increase. Remember as long as you keep your balance around 5 to 10 percent your scores are going be ok, you don't necessarily need to keep 0 balance to keep a good score.
@gjean78 wrote:
@Anonymous wrote:I was really good about paying all cards off to 0 for the past several months, however the past 2 months the statement dates hit just before payday and I was unable to wipe the balance to 0. This in turn has hurt my score considerably. I am never late in payment, I've just had a high balance reported the past 2 months. This month, I've paid them all to 0 early so that I can report a 0% utilization rate. How long, if so, will it take my score to recover from the hit
As soon as the card Company report the balance, you should see an increase. Remember as long as you keep your balance around 5 to 10 percent your scores are going be ok, you don't necessarily need to keep 0 balance to keep a good score.
@gjean78Anything over 8.99% is the next step up the threshold ladder. Points loss. 5% is fine.
@Red1Blue wrote:
@FireMedic1 wrote:
@gjean78Anything over 8.99% is the next step up the threshold ladder. Points loss. 5% is fine.@FireMedic1 What about Apple Card. It has both Installment option for Apple products and other spending. With 0% financing Apple products are appealing. But GS does not denote them as installment loan. So the card is always maxed out or near maxed out and can never take advantage of the 0% financing with out taking a hit on the scores.
Everyone has the way they like to have their revolving accounts report month to month, and there's no 'right' way. I feel too many people stress AZEO on a month to month basis. Utilization has no memory in current FICO models. It's not a credit building factor. Let your cards report balances month to month or don't. Will your scores drop from higher reported utilization, more accounts with balances, etc.? Yep. Are you applying for credit next month? Then, who cares? You can successfully implement AZEO in about 4-5 weeks anytime you choose. You want a higher score next month that you aren't using anyway, or a 0% APR deal that saves you cash? Whatever points you lose by having high reported utilization on your Apple card come right back as soon as you lower the balance. Finances over FICO. Now, there is something to be said about just letting your cards report super high utilization every month, your scores dropping significantly, and one of your lenders getting scared, and reducing your credit limits, or even closing your account completely bc they see you as too risky (looking at you, Synchrony), so don't go crazy with super high reported balances on all your accounts causing massive score loss, but for a 0% APR deal on one card...roll with it. Just my humble opinion on this one.
@Red1Blue wrote:
@FireMedic1 wrote:
@gjean78Anything over 8.99% is the next step up the threshold ladder. Points loss. 5% is fine.@FireMedic1 What about Apple Card. It has both Installment option for Apple products and other spending. With 0% financing Apple products are appealing. But GS does not denote them as installment loan. So the card is always maxed out or near maxed out and can never take advantage of the 0% financing with out taking a hit on the scores.
That card I have no clue how it works. All kinds of weird stuff I'm not rehearsed in. So I cant post and guess and dont want to lead anyone in the wrong direction.
Also, keep in mind that there are some "rules" for implementing AZEO for scoring purposes.
You need at least three revolvers for this to work. So, if you have one or two credit cards, then AZEO does not apply to you. But, once you have that third credit card (revolver) then AZEO is indeed an available option.
Also, make sure that the revolver that does present a balance (read: what is reported on the Statement Date) is indeed a major bank's credit card. So, please do not use - for example - your Lowe's credit card from Synchrony to be the one that reports. Also, I believe that Chase does not like to be the only one reporting a balance.
And, like others have said, "utilization has no memory". In a sense, it does not matter what you do this month (well, within reason, of course) you can "fix it" next month. As others have said, finances over fico!
Starting Score: Exp 627