@Anonymous wrote:This always baffles me. It should be a non issue: consistently pay your bill by the due date and you'll do fine.
Well, not so fast. I pay faithfully. I really do.
But each month is a different outcome. If I pay the entire balance my score drops, if I pay the minimum, my score raises.
Note: I NEVER go beyond 30% utlztn and I'm not even talking big numbers here... the limit on my secured cap 1 card (up til last month) was only $250. Last month I got an unsolicited increase to $500 and BOOM just like that I'm in the 740's for the 1st time in my life.. assuming because my utlztn percentage went down. But every month is guesswork and a small panic attack.
Now, today's the 6th and my bill's due on the 10th; I owe like 65 bucks and I dont know how much to pay to keep my score high, nor do I know what date the bureaus take their snapshot of my activity to determine my score....
Can someone please tell me: 1) when is the best date to pay, 2) how much to pay, and 3) how much of a balance should I leave?
P.S. If you're going to say it doesn't matter just pay on time, then please stop typing. It DOES matter for some people and I happen to be one of them.
Its pretty simple. In general pay the full amount by the date due. If your carrying a balance resulting in interest you are doing it wrong. You should not be carrying balances. Period. Don't get confused by the idea of utilization. When your statement cuts the balance shows on the credit report. As long as you don't pay the full amount before a statement cut you will show utilization. Some low utilization will lead to a higher credit score compare to no utilization showing on your credit report. Again utilization showing does not require carrying a balance. Don't obsess over your credit score. It goes up and it goes down. The only time to think about really optimizing a score is in preparation for an application that will be made in the very very near future.
Specific answers to your questions 1. Pay any date after statement cut up to the due date, 2. pay the full amount due from last statement cycle 3. don't leave any outstanding balances.
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@Anonymous wrote:
Pay before due date, obviously. Leave $10 balance in play on card, and then pay THAT amount 8 days after due date.
This makes zero sense. Basically the OP will end up paying money in interest doing this unless they have a 0% apr.
@Anonymous wrote:
Now, today's the 6th and my bill's due on the 10th; I owe like 65 bucks and I dont know how much to pay to keep my score high, nor do I know what date the bureaus take their snapshot of my activity to determine my score....
Can someone please tell me: 1) when is the best date to pay, 2) how much to pay, and 3) how much of a balance should I leave?
You are not providing enough information.
1) What was your last statement date?
2) What was the amount shown on that Statement? ( the statement amount )
3) Have you added any new charges since that statement, items that did not show up on that statement but you include in the current “amount owed”?
4) Have you made any interim payments after that statement printed? Are those payments factored in to the $65?
5) Is the $65 the statement balance from the statement date, or the balance at this moment?
After you answer all those questions, ALL those questions, a clearer picture will emerge and more specific answers can be given. Without all those answers the responses will remain generalizations.
@Anonymous wrote:This always baffles me. It should be a non issue: consistently pay your bill by the due date and you'll do fine.
Well, not so fast. I pay faithfully. I really do.
But each month is a different outcome. If I pay the entire balance my score drops, if I pay the minimum, my score raises.
Note: I NEVER go beyond 30% utlztn and I'm not even talking big numbers here... the limit on my secured cap 1 card (up til last month) was only $250. Last month I got an unsolicited increase to $500 and BOOM just like that I'm in the 740's for the 1st time in my life.. assuming because my utlztn percentage went down. But every month is guesswork and a small panic attack.
Now, today's the 6th and my bill's due on the 10th; I owe like 65 bucks and I dont know how much to pay to keep my score high, nor do I know what date the bureaus take their snapshot of my activity to determine my score....
Can someone please tell me: 1) when is the best date to pay, 2) how much to pay, and 3) how much of a balance should I leave?
P.S. If you're going to say it doesn't matter just pay on time, then please stop typing. It DOES matter for some people and I happen to be one of them.
Utilization, for FICO scoring purposes, is based on the reporting date, which is usually (but not always) based on the statement balance. So no matter what you pay after the statement date, it's not going to affect your score. Your "due date" is irrelevant for this purpose.
Mr. A has 2 cards, each with a $1000 limit, spent $500 on each card this month, and paid in full on both cards.
Example 1: Card 1 he paid before the statement date. Card 2 he paid after the statement date, his aggregate utilization is 500/2000 = 25%
Example 2: Card 1 and Card 2 he paid after the statement date. His aggregate utilization is 1000/2000 = 50%.
Example 3: Card 1 and Card 2 he paid before the statement date. His aggregate utilization is 0/2000 = 0%.
It is best for your FICO scores to maintain individual card utilization at 28% or less, and aggregate utilization at 8.9% or less.
@red259 wrote:
@Anonymous wrote:
Pay before due date, obviously. Leave $10 balance in play on card, and then pay THAT amount 8 days after due date.This makes zero sense. Basically the OP will end up paying money in interest doing this unless they have a 0% apr.
If the $10 balance left is from AFTER the statement closing date, than it makes sense. I believe that is what EdenL is assuming. Even then, there's no reason to pay that amount 8 days later. Just repeat after the next statement closing date.
If the entire balance is from BEFORE the statement closing date, meaning no new swipes/purchases afterwards, than you are correct.
The real issue with EdenL's advice is that by the time the due date is near, your entire balance has already reported anyways. You might as well pay the entire statement balance due. His advice, if it's an AZEO card, should be aimed towards the statement closing date, not the due date.
