flojo's post: High Reported Utilization, But We PIF

[Anonymous]

I know this is an old post, but I just came across it in my email... weird.  This is my personal experience:

1. DO use your available credit.

2. DO NOT exceed 30% of your available credit at any given time.  If you have 3 CC's and #1 has a $5,000 limit, #2 has a $10,000 limit, #3 has a $8,000 limit, do not exceed $1,500 in balance at any given time, $3,000 balance on #2, and $2,400 on #3.  This has helped me push my score 10 points from 803 to 813 in one month.

I pay my AMEX almost every week.  It's a pain, and not that 10 extra points will save me any more on interest when and if I do apply for a loan.  However, this will help push you to the next level.

Good luck!

Steve

[LilyBee]

Way, way back in 2007, my scores were TU-804; EQ-813; and EX-825

I joined this Forum in 2009, when my scores were dropped because I had not used my available credit on any of my cards.  It was against my religion to charge.   But, since I found out from this forum that I should at least charge something, it's taken awhile for my scores to rise again to the upper numbers.  So, I reverted back to just doing what I want and let the scores fall where they may.  Silly game.

[Anonymous]

You've seen the right answers above, but take it a step further.

If your expense reports allow it, pay all cards down before the due date of the payment, especially AMEX.  Just as important, if you make the minimum payment due before the date due, your monthly payments will be computed to zero.  This can be especially helpful if you stay ahead EXACTLY one month on your mortgage, making these payments on the first day they may be paid (before they are due and even better before midnight on the first day).  This helped me significantly and was just a matter of setting up auto pay features for the exact closing dates.  AMEX varies my closing date each month so I need to pay that one off completely on the closing day of that months cycle.  Hope this helps.  Oh yeah...paying all cards to zero will LOWER your score, you must have some revolving accounts with small balances to max out the FICO logorithm.  Fair Issac is only fair to the banks and they want people who incur debt and pay some interest.  Sad but true.

[llecs]

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@Anonymous wrote:

Oh yeah...paying all cards to zero will LOWER your score, you must have some revolving accounts with small balances to max out the FICO logorithm.  Fair Issac is only fair to the banks and they want people who incur debt and pay some interest.  Sad but true.

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Not necessarily. FICO will ding you if you are carrying balances and will reward you by having $0 balances reporting...provided you have at least one reporting a small balance ($1 to 9% of the CL). IMO, FICO should change that, but it is what it is I guess. FICO has no memory of your util so there's no harm in paying in full each month. And having $0 across the board doesn't preclude you from having 800 scores. There are several examples in here of posters paying everything off and still maintaining an 800+ score.

[MarineVietVet]

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@Anonymous wrote:

You've seen the right answers above, but take it a step further.

If your expense reports allow it, pay all cards down before the due date of the payment, especially AMEX.  Just as important, if you make the minimum payment due before the date due, your monthly payments will be computed to zero.  This can be especially helpful if you stay ahead EXACTLY one month on your mortgage, making these payments on the first day they may be paid (before they are due and even better before midnight on the first day).  This helped me significantly and was just a matter of setting up auto pay features for the exact closing dates.  AMEX varies my closing date each month so I need to pay that one off completely on the closing day of that months cycle.  Hope this helps.  Oh yeah...paying all cards to zero will LOWER your score, you must have some revolving accounts with small balances to max out the FICO logorithm.  Fair Issac is only fair to the banks and they want people who incur debt and pay some interest.  Sad but true.

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Welcome to the forums but I need to respectfully disagree with this. A person never has to pay interest in order to help their score. Scoring doesn't even look at the amount of interest paid each month. You'll make the credit card companies happy by doing this but it's not necessary for scoring purposes.

I can't remember the last time I paid interest on any of my 7 revolving accounts and I use all of them every month. What I try to do is manage the utilization (both overall and indiviidual account) and the number of these accounts that report a balance each month. It just takes a little time and patience and practice and study and research to get it right. If I can do it anyone can believe me.

Credit is a tool; a means to an end and if used correctly can actually save a person money. But like any tool it can hurt you if used improperly.

Just my 2 cents worth. 

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[Anonymous]

A simple solution to this is to make weekly payments approximately what you spend. Then when your statement comes make an adjustment to your payment. I use my AMEX for nearly everything and show a near zero dollar balance on y credit reports.