All Almost Zero Except One

[Jazee]

With different cards used for cash/points for different categories, it's a bit of a chore to maintain all zero balance except one (AZEO).  I have two questions...

Let's say you had 6 cards. Let's say one has a significant balance (> 25%) , two are very rarely used (mainly UTI padders) and the remaining 3 are very lightly used.

Anyone have a guess on roughly the score difference in paying the 3 to zero right before statement cut versus a less than 1% UTI balance on each? In many cases auto charges can  come in after payment due date and right before statement cut.

Second question is do card companies potentially penalize you for late payment if you make payment after due date but before statement cut or do most if not all only penalize and report late if no payment at all is received before statement cut? I've always paid by due date and then again sometimes at statement cut so have no clue. Would be a lot simpler to just pay balance on the last day before cut assuming payment is credited before startement cut of course.

[Thomas_Thumb]

You should be subject to interest penalties if not PIF by due date. That can carry forward to future months until you clear the account be a PIF before due date. A late fee penalty can also be assessed but is often waived upon request if a one time occurrence. A late under 30 days won't be reported to credit bureaus.

Fico looks at # of accounts and % of revolvers reporting balances in scoring. A balance is a balance. It is independent of utilization. If you have 6 cards, keeping % reporting at 50% or less should avoid any noteworthy penalty.

For those with only 1 revolving account it is  far better Fico scorewise for the card to report a small balance (under 9% UT but atleast $5) than to report $0.

[Thomas_Thumb]

FWIW - just checked my EQ Fico 8 on MyFico.

Going from 3 of 6 cards reporting small balances to 5 of 6 with small balances dropped my EQ Fico 8 score 9 points (844 => 835). Score at 4 of 6 was 840. Score at 2 of 6 was 844 (same as 3 of 6).

[Jazee]

Thanks. About what I expected. Very minimal difference but for those that feel the 4-9 points could make a difference in a credit decision would be worth the effort.

[Pppoolboy]

Yes and, for that 5-10 point drop to be meaningful, it would depend entirely what one's score is.  850 to 840 would be entirely meaningless. 550 to 540 would also be entirely meaningless. 705 to 695 might be meaningful.