High Utl as a Temporary Strategy?

[jazhead077]

I'm in the early stages of actively rebuilding my credit. As of last month, I had 2 active cc accounts and 1 student loan, Secured FNBO - $1500 Paypal connect - $500. I've seen my largest score increases (20 points last month) by caring a high balance on a statement and paying it off on the next billing cycle. My question is, should I continue this practice to increase my scores? I'm reading that it's ideal to keep utl 1-9% on one card and 0 balance on remaing accounts. This month I was approved for 2 cc Discover - $1000 and C1 - QS $3000. I currently have 2% balance on my PP and 0 on FNBO and I am considering charging on my FNBO before my statements closes on the 25th and paying the balance off next month.

My short term goal is to purchase a car this Spring (May or June) and would love to get my EQ around 680+. I am also working on my baddies (2 - CO DV, GW letter pending, 1- 120 day late - GW pending, 3 - Collections (DV pending).

Thanks in advance!

EQ 630 TU 624 EX 638

[Anonymous]

Hello JH.

You say that you carried a large balance on your statement and then paid it off on the next billing cycle.  Just so we are using words in the same way, can you tell the folks reading your thread if you did something like this?

You made a bunch of charges.  You waited until a statement printed. on which all those charges appeared.  For example, suppose the statement printed on Jan 4th and had an "amount owed" of $400 at the top.  The new billing cycle began on Jan 5 and then, a couple weeks into it, you paid that $400. 

Is that what you did?

If so, that is not carrying a balance.  That's actually doing something called Paying In Full.  It's a great habit to have.  The statement prints, and then you have a little over three weeks before you have to make a payment.  If you pay the full amount on the statement, then you are said to have Paid In Full or PIF.

When one carries a balance, by way of contrast, one does not pay the full amount listed on the statement.  In the example above, you might pay $100.  The difference ($300) is then carried over to the next billing cycle and you will be charged interest on it.

Can you tell us which of those two things you did?

[jazhead077]

Thanks for the help!

Here's what I did last month: With a due date of 1/22  and statement close date: 1/26

On 1/25 I paid off the balance $1,072. Jan 29 I received an account alert that my score increased due to balance reducton: EX 20 points EQ 20 points and TU 21

Hope that answers your question. I'm stll really green and trying to learn.

[JBjunior]

You are merging months together and getting things confused.  Your "due date" was from the previous month.  Your "statement closing date" was for the still in cycle month.  Why you got a score increase was you had a statement closing balance that was significant the month before that you paid off before your new statement closing date, which is what reported, went on your credit report.  You just made up points that you had lost the previous month..... no it isn't a good strategy.

You want something to report on one card, but as little utility on your available cards as possible.

[jazhead077]

Understood...Thank you

[Anonymous]

pay down as much as you can before your statement closing date. i