WILL PAYING THIS CREDIT CARD BOOST MY CREDIT SCORE?

[Anonymous]

Example:

My current payment is due 5/4/15. Statement due date is 5/8/15

My current balance owed for 5/4/15 is 0.00

I have a balance on my card of 1500 as of now from spending a few days ago. If I pay this in full before 5/7/15 (EVEN THOUGH IT'S NOT OWED ON MY CURRENT STATEMENT FOR 5/7/15) which will make me have another 0.00 amount owed for June, will this increase my credit score or due I need to let this hit my report and then pay off in full so that the credit bureaus will see that I payed something off. Im just confused if I do pay on the due date, how will they see I paid something like that in full without it being on the statment for 5/4/15???

[takeshi74]

It's really a matter of how it impacts your utilization versus what it was the last time the account reported.  If it reported 0 last time and paying it means that it will report 0 this time then your utilization didn't significantly improve.

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@Anonymous wrote:

Im just confused if I do pay on the due date, how will they see I paid something like that in full without it being on the statment for 5/4/15???

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If you pay on the due date it does not reduce the balance that was already reported on the statement date.  The payment, however, does impact the next reported balance.  Again, it's really the reported balance/utilization that is used in generating your score.  It falls under Amounts Owed below:

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

5/4 isn't your statement date so it's confusing when you say "statement for 5/4/15".  It's statement due on 5/4/15.

[Anonymous]

My card max  1600 so that's close to 100. So should I let it hit my credit report and then pay infull for next months statement?

[Anonymous]

If you pay your card it will impact your score because you have more available credit.

[Anonymous]

I understand that but the 1500 hasnt been reported. Im asking how do they know I paid that off if I never let it hit my next statement

[Ghoshida]

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@Anonymous wrote:

Example:

My current payment is due 5/4/15. Statement due date is 5/8/15

My current balance owed for 5/4/15 is 0.00

I have a balance on my card of 1500 as of now from spending a few days ago. If I pay this in full before 5/7/15 (EVEN THOUGH IT'S NOT OWED ON MY CURRENT STATEMENT FOR 5/7/15) which will make me have another 0.00 amount owed for June, will this increase my credit score or due I need to let this hit my report and then pay off in full so that the credit bureaus will see that I payed something off. Im just confused if I do pay on the due date, how will they see I paid something like that in full without it being on the statment for 5/4/15???

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First question, how many cards do you have? 

If this is your only card, you do not want to let this report to zero. If your limit is $1600 and you have made $1500 in purchases this month (zero last statement) then pay say $1400 and let $100 report (<10% of your total credit)

If you have 2 or more cards, you can either pay this card down to zero and let some other card report (again, ideally, not more than 10% of that card's limit), or let this card report $100 and let all others report zero.

If you do not have any derogatory items (late payment, collections etc) then this should boost your score.

Two key things impacting score (amongst others):

(1) On-time payment: if you owed $0, and you paid $0, you're 100% on-time. If you do owe anything, you must pay the min balance at least before the due date; to avoid interest, pay all that you owe by the due date. That ensures on time payment. For best scores, it must always be 100%.

(2) Utilization: You have $2000 limit, your last statement was $500, you spent $1500, and paid $500. Now your balance is $500. When the statement cuts, (or for US bank and some others, at the end of the month), it will report the entire $1500 used on $2000, so it's 75% utilization.

For score maximization, do not let the banks report more than 10% of your limit. When there are months when you can't do that, try to keep this utilization below 30%. More than that, on multiple cards, and banks will look at you suspiciously.

[Ghoshida]

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@Anonymous wrote:

I understand that but the 1500 hasnt been reported. Im asking how do they know I paid that off if I never let it hit my next statement

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Who needs to know?

The bank that lends you $1500 knows that you have paid it back to them when you make the payment.

Other banks will see the "high credit" info next to your credit card on the file. There, it will report the highest amount that you owed at any point in time. It will show $1500 (or more, if you ever had).

[lhcole77]

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@Anonymous wrote:

My card max  1600 so that's close to 100. So should I let it hit my credit report and then pay infull for next months statement?

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If you let a $1500 balance report on a card that has a CL of $1600 that will undoubtedly have an effect on your score. 94% UTL on a single card is almost maxed out.

That effect will only be temporary. 

Once the account reports a lower (or 0) balance again you will regain lost points.

[Anonymous]

It depends on your current utilization. But if you owe $1500 on a $1600 limit card that is high.

Pay BEFORE your due date (now if you don't know when it is) whatever amount you need to pay to keep your TOTAL utilization of all your revolving accounts under 30%.