On the right track about util?

[Anonymous]

So unless True Credit (for my limits/to track payments, no not for the scores lol) is behind, apparently Merrick Bank only updates every other month or so. Still haven't reflected my account as paid off and they updated 6/9, unless either company is behind because of the holiday. That being said, I know to try not to use more than 8-10% of my CL is optimal. I am going to try to rotate the cards I do this on as well since most have low limits. (Until after I buy my house next year..then I can get better ones hopefully!) Before I found this forum, I got some cards with the low limits as I said and I don't wanna close them right now because they're the oldest on my history other than the store  cards.

I have balances on every one of my other cards but if all goes well, will have all but my Applied card paid off next month and Applied by Sept/Oct. I want to pay that one down in halves or thirds to see the impact on my score. (Yes I know it will have a bigger impact if I pay it all at once.) I have 7 non store cards and if I remember from when I opened them, all but my Cap 1 and newest HHB are secured. I should also say when I look at understanding my score, nothing is said about the number of accounts hurting my score. My plan unless I see a huge drop in my score (which I'm hoping there won't be as I'm getting my util down,) is to use three of the cards one month for gas, groceries etc, pay half off and then the rest the next month, using the others on alternating months. In some cases though, 10% of my CL is equal to the minimum payment, so there will only be a few dollars on the card.

After reading through this twice, I guess my main question is, by looking at my reports for a few months, if certain CC report every other or every three, can using the cards once every two or three months and then paying them off, carrying no balance for a month before using again hurt my score? I am trying to do everything I can to raise my score to at least 660 by April-May of 09 right before I start house hunting.

Thanks so much!

Karen

[Anonymous]

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Kareninaz wrote:

So unless True Credit (for my limits/to track payments, no not for the scores lol) is behind, apparently Merrick Bank only updates every other month or so. Still haven't reflected my account as paid off and they updated 6/9, unless either company is behind because of the holiday.

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No, they probably report every month.

Since they reported the last time on 6/9, that means they most likely reported again just yesterday (7/9).

Even after a CCC reports, it takes the CRAs a few days to update your reports with the new balances.  Typically this happens within 3-10 days, but has been known to take up to two weeks or so on occasion.

I bet you'll see the new reporting date on TC within just a few days.

Message Edited by cheddar on 07-10-2008 01:38 PM

[Anonymous]

Sorry! I thought I read somewhere that some CCs only report every other month. In that case, will it hurt if I rotate the cards, using 3 one month and 4 the next, paying the rest of the balance off in the month the card's not used? I'm trying to make sure I understand everything and I think I read this somewhere, I just wanted validation.

[Anonymous]

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Kareninaz wrote:

Sorry! I thought I read somewhere that some CCs only report every other month. In that case, will it hurt if I rotate the cards, using 3 one month and 4 the next, paying the rest of the balance off in the month the card's not used? I'm trying to make sure I understand everything and I think I read this somewhere, I just wanted validation.

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You have exactly the right idea.  This is, in fact, what a lot of members here do.  Rotate your cards so that each one reports a balance at some point, but also so that not too many report a balance at the same time.

You want to have fewer than half of them reporting a balance at any one time for optimal FICO scoring.  Let the rest report $0.

Good thinking!

[Anonymous]

Ty! One more question. Of the department store cards, my Penneys has a 0 balance and reports closed on one of my reports. I'm leaving that alone until after I move because I'm worried asking to have it reopened might result in a hard inq. I rarely shop there anymore, the only thing I would do is buy a pair of walking shoes from them online, but that'd work out to 1/2 my credit line. Plus, back in early 2000's, I was late and they reduced my CL, it's now at just under $100, so I'm not sure it'd make that much difference. Target, I can shop there every few months no problem, but I'm currently paying my digital camera off anyway. Of the other 4 store cards I've got, I'm paying the minimums for at least the next month or two but after that, I believe I read here that they can report or affect your score differently. Will it hurt if I carry little or no balance on the store cards for 4-6 months? I'm just asking to make sure cause I wasn't planning to buy any clothes or anything else 'extra' until after the move.

I think that should be my last question for now. I'm sooooo glad I found this forum.

Karen

[Anonymous]

Not carrying a balance on them will likely boost your score, though you should call them up and ask them how often they have to be used before they are coded "inactive." Usually it a longer period of time for store cards than for bank cards, because you can only use them one place.

[Anonymous]

Ty! I did that. Believe it or not, all of them said 18 months, so I'm in the clear thank goodness. One of the bureaus reports my JCP card as closed so I need to correct that. If I remember right, it's one of my lower ones. The rep at JCP said to dispute through the credit bureau.

Karen