I have 2 low limit credit cards ($1300 total) that have been maxed out for a while. But, I have a plan. I can't afford to just pay them off. However, this month before the due date, I am going to pay them off anyway. Then, after the accounts cycle (and the balances reported to the bureaus) about a week later, I will pay my bills and buy gas and groceries with my credit cards. So my question is, will this work? For utilization, do the bureaus go by average daily balance, or the balance when the account cycled? If a person maxes out their credit cards at some point during the month but then pays it down 90% before the due date should have a utilization of 10%, right?
What gets reported to the CRAs is the exact balance on yo...
What gets reported to the CRAs is the exact balance on your account at the time it is reported.
Let's say you have a zero balance between April 1 and 29. A $1000 charge appears on April 30th, but you pay it off in full the following day. If the creditor reports to the CRAs on the 30th, they will report the entire $1000 balance. If they report on the 29th or May 1st, they will report the zero balance.
Call them and find out what day they report your account, most of them will. If they don't, the exact day shows up on your TU report if you pull it. Use that as a target date to make sure your accounts are as low as possible within 3-4 days either side of that date.