How to increase Credit Score Fast using Utilization hacks?

[TyRacing]

is it best to Pay In Full or just let sit at 1% utilization before statement closing date? or other 2% - 10% utilization?

and any other hacks to increase CS fast?

thanks

[Anonymous]

1% reported aggregate utilization will put you in the best place with respect to scoring when it comes to utilization.  To do this you want just 1 revolver (no matter how many you have... 1 or 100) to report a small balance.  This balance could be $5-$20 and you'd be just fine.  Always pay in full your statement balance in order to avoid paying any interest, but leave that small balance behind to report.  Again, this is only on one revolver.  For example, if your statement balance is $200 but your current balance is $300, you can pay $290, thus leaving behind a $10 balance to report.  Since you're paying the $200 (and then some) you won't be charged any interest; this is what we call "paying in full" but you're still allowing a non-zero balance to report.

[TyRacing]

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@Anonymous wrote:

1% reported aggregate utilization will put you in the best place with respect to scoring when it comes to utilization.  To do this you want just 1 revolver (no matter how many you have... 1 or 100) to report a small balance.  This balance could be $5-$20 and you'd be just fine.  Always pay in full your statement balance in order to avoid paying any interest, but leave that small balance behind to report.  Again, this is only on one revolver.  For example, if your statement balance is $200 but your current balance is $300, you can pay $290, thus leaving behind a $10 balance to report.  Since you're paying the $200 (and then some) you won't be charged any interest; this is what we call "paying in full" but you're still allowing a non-zero balance to report.

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so paying in 99% of the credit limit (let say 2.5K), before the statement closing date to leave behind ($25) 1% utilization to be reported

then paying in the 1% ($25) left behind after the statement closing date in order to avoid paying any interest?

[Anonymous]

As long as you pay the reported statement balance before due date, usually about 20-25 days after the statement closing date, you won't be paying interest, this is known as the grace period.

[Anonymous]

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@TyRacing

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so paying in 99% of the credit limit (let say 2.5K), before the statement closing date to leave behind ($25) 1% utilization to be reported

then paying in the 1% ($25) left behind after the statement closing date in order to avoid paying any interest?

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Not quite.  Leaving behind $25 to report means that the $25 left behind will under most circumstances become your next statement balance and that amount will be due the following month.  If you pay that amount (or more) you avoid having to pay interest.  Using the example above, let's say you had a $2500 statement balance from the previous month.  You had no other charges to raise that balance.  Before your due date you pay $2475, leaving a $25 balance behind.  That $25 gets reported to the bureaus and then your statement balance is $25.  Next month, you may make $500 in purchases.  Your current balance would then be $525.  Come the due date, all you need to pay is the $25 (previous statement balance) to avoid paying interest.  Perhaps you decide to pay $125.  Your current balance will then drop from $525 to $400 and your new statement balance will become $400; This is the amount you must pay the following month in order to avoid incurring interest charges.  Hopefully that makes sense.

[Anonymous]

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@Anonymous wrote:

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@TyRacing

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so paying in 99% of the credit limit (let say 2.5K), before the statement closing date to leave behind ($25) 1% utilization to be reported

then paying in the 1% ($25) left behind after the statement closing date in order to avoid paying any interest?

---

Not quite.  Leaving behind $25 to report means that the $25 left behind will under most circumstances become your next statement balance and that amount will be due the following month.  If you pay that amount (or more) you avoid having to pay interest.  Using the example above, let's say you had a $2500 statement balance from the previous month.  You had no other charges to raise that balance.  Before your due date you pay $2475, leaving a $25 balance behind.  That $25 gets reported to the bureaus and then your statement balance is $25.  Next month, you may make $500 in purchases.  Your current balance would then be $525.  Come the due date, all you need to pay is the $25 (previous statement balance) to avoid paying interest.  Perhaps you decide to pay $125.  Your current balance will then drop from $525 to $400 and your new statement balance will become $400; This is the amount you must pay the following month in order to avoid incurring interest charges.  Hopefully that makes sense.

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BBS, if $2500 was the statement balance from last month, it must be paid in full by due date to avoid interest, leaving $25 means you're carrying $25 balance into next statement. To report a balance without carrying a balance, the reported balance must come from new charges in the current cycle.

[Anonymous]

You are 100% and I misspoke above!  Great catch.  I should have said a $2525 current balance, paid the $2500 statement balance, thus leaving $25 to report.

[SouthJamaica]

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@TyRacing wrote:

is it best to Pay In Full or just let sit at 1% utilization before statement closing date? or other 2% - 10% utilization?

and any other hacks to increase CS fast?

thanks

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It's best to let all but one card report zero balances, and one card report a small balance which you pay off after statement cuts.

[Thomas_Thumb]

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@TyRacing wrote:

is it best to Pay In Full or just let sit at 1% utilization before statement closing date? or other 2% - 10% utilization?

and any other hacks to increase CS fast?

 leave a balance

thanks

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How many cards do you have? Are any AU cards, Charge cards (such as AMEX) or store cards that may be considered charge cards?

Leave a balance on a revolving account in your name even if an AU card also reports a balance. Don't have a charge card as your only card reporting a balance. If you use  charge card and need to play the AZEO game, pay it off before the statement cuts.