ADVISE PLEASE on CC payments and fico scoring

[Egaffne2]

Can someone please clarify something I've heard... I've been told that I should utilize 5-7 percent of my cards. Or is it better to pay my card off completely before the statement date and then therefore have a zero balance due and always have 0 balance. Or will it look like I'm not using the card ( even tho I am ) and not maximize the scoring benefit?

[Anonymous]

Are you going for a mortgage? Because if you’re not, you’re doing a lot more work than you need to. 

Don’t let a single card report more than 28.9%, don’t let your aggregate utilization pass 8.9%, and don’t let all cards report $0 at any time. This is the best way to use your cards. 

If you really want to squeeze out what amounts to 5 points if you’re lucky, pay all cards before the statement cuts to $0 except one which you let report between 1% and 8.9%. 

Keep in mind that creditors are on to these games and may deny you for not using the credit you have if you do the one card trick (it’s called AZEO - all zero except one). 

[Egaffne2]

Thank u 4 responding. No I'm not going for mortgage in the near future but am concerned about increasing my score in general. I have 2 cards so should I... A. Never use more than 28 percent of limit ever on each card B. At statement close only allow one card to report balance of 1 - 8 percent and the other report 0. Paying the card that reports balance in full obviously. I could switch off which card reports which. Does this sound right? My one card I use for everyday purchases because I get cash back so I can pay it off before it ever gets to 28 percent therefore using it as much as I want. Then at statement close make sure the balance is 0 then on other card report small balance at statement close. How does this sound? Any other advise? Thanks!

[calyx]

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@Egaffne2 wrote:
Thank u 4 responding. No I'm not going for mortgage in the near future but am concerned about increasing my score in general. I have 2 cards so should I... A. Never use more than 28 percent of limit ever on each card B. At statement close only allow one card to report balance of 1 - 8 percent and the other report 0. Paying the card that reports balance in full obviously. I could switch off which card reports which. Does this sound right? My one card I use for everyday purchases because I get cash back so I can pay it off before it ever gets to 28 percent therefore using it as much as I want. Then at statement close make sure the balance is 0 then on other card report small balance at statement close. How does this sound? Any other advise? Thanks!

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If you are only concerned with building history/score at this point (no apps in the immediate future), then go ahead and let them report when  you use them.   Before it reports, you might want to make sure your 'daily driver' is at <28.9%, but there's no reason to worry about All-Zero-Except-One since you aren't applying for anything.   Set up auto-pay so you don't miss any payments and you'll be fine.

[Egaffne2]

So is it better to allow my cards to report a small balance or a zero balance. Meaning I would keep them at 0 by statement close or keep a little on there. I'm just trying to find out best way to maximize scoring off my two cards, thats my primary and only concern. Thanks for the input!

[xaximus]

Allow one card to report a small balance, zero balance the other card. I would also look into adding another card since 3 cards and a loan (of any type) are needed to have the best score.

[SouthJamaica]

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@Egaffne2 wrote:
Thank u 4 responding. No I'm not going for mortgage in the near future but am concerned about increasing my score in general. I have 2 cards so should I... A. Never use more than 28 percent of limit ever on each card B.

Yes

At statement close only allow one card to report balance of 1 - 8 percent and the other report 0.

Yes

Paying the card that reports balance in full obviously. I could switch off which card reports which. Does this sound right? My one card I use for everyday purchases because I get cash back so I can pay it off before it ever gets to 28 percent therefore using it as much as I want. Then at statement close make sure the balance is 0 then on other card report small balance at statement close. How does this sound?

Fine
Any other advise? Thanks!

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[Egaffne2]

Thanks everyone for your input I think I have a good plan and I will add a third card and as far as an installment is concerned, I'm waiting on my student loans to rehabilitate. Soon enough they will remove old negative student loan info and replace with a new positive status.

[HeavenOhio]

@Egaffne2, your student loans count as installment loans. No need for any more.