system is flawed

[Anonymous]

Yes that would be the "no revolving credit use" penalty associated with "AZ" or "all zero" balances on all revolvers.  If you follow the illustration I gave in my last post an always let a small (say $10) balance report on that card you will avoid that penalty.

[dunn2500]

so yeah i have kept same thing going on CC but its the auto loan thats only other thing on my credit which is why this is baffling.....

[Anonymous]

So you're still letting a balance report then correct?  Just making sure you aren't making a purchase and immediately paying it off, thus keeping your reported balance at $0.

[dunn2500]

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@Anonymous wrote:

So you're still letting a balance report then correct?  Just making sure you aren't making a purchase and immediately paying it off, thus keeping your reported balance at $0.

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yeah i leave $30 (am going to do $10 this next coming period) or less as balance now on statement date.....it took me a few months as videos and threads werent really clear about due and statement dates conflicting. so I cant pay off balance on due date and before statement date or your pts get hit.......if i did autopay to pay off my balance to $0 on due date i would get penalized every month on pts so idk how people arent getting creamed if they pay off their cards everymonth

[Anonymous]

If you set autopay to pay your statement balance in full, you'll never report a $0 balance on the card unless you make zero purchases that month.

So this month, let's say you leave behind that $10 to report.  Your statement balance will then be $10 and on your next due date the end of January or whatever your autopay would pay that $10.  If you made (say) $50 in purchases between now and then, your current balance at the time would be $60... the autopay would pay $10 and the $50 would be left behind to report and become your new statement balance due next month.  Then the next month say you make $30 in purchases.  Your current balance would be $80 at the time your autopay sends in $50, so your statement/reported balance would be $30. 

As long as you're making at least 1 purchase every month your statement balance (and reported balance) will never be $0 if your autopay is set to pay your previous statement balance.

[Bankrupt2019]

I'm not sure if it's been mentioned yet, or if you've seen it yet in here elsewhere;  but having only 1 card certainly isn't helping you any. You'll always be held back because 100% of your cards are either reporting a balance or zero. If all you have is the auto loan you mentioned and 1 credit card your scores will be very sensitive to change. Add a couple more credit cards to add some resilience. 

[dunn2500]

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@Anonymous wrote:

If you set autopay to pay your statement balance in full, you'll never report a $0 balance on the card unless you make zero purchases that month.

So this month, let's say you leave behind that $10 to report.  Your statement balance will then be $10 and on your next due date the end of January or whatever your autopay would pay that $10.  If you made (say) $50 in purchases between now and then, your current balance at the time would be $60... the autopay would pay $10 and the $50 would be left behind to report and become your new statement balance due next month.  Then the next month say you make $30 in purchases.  Your current balance would be $80 at the time your autopay sends in $50, so your statement/reported balance would be $30. 

As long as you're making at least 1 purchase every month your statement balance (and reported balance) will never be $0 if your autopay is set to pay your previous statement balance.

yeah I mean auto pay to pay it off to $0 every month, not just the minimum....but yeah i understand how they work now thanks to alot of you guys

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[dunn2500]

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@Bankrupt2019 wrote:

I'm not sure if it's been mentioned yet, or if you've seen it yet in here elsewhere;  but having only 1 card certainly isn't helping you any. You'll always be held back because 100% of your cards are either reporting a balance or zero. If all you have is the auto loan you mentioned and 1 credit card your scores will be very sensitive to change. Add a couple more credit cards to add some resilience. 

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yeah it has i just have quite a few inquiries as of late and dont want a **bleep**ty card like i already have ( I applied for some upper tier cards and was declined so am lil hesitant)......i dont live off them so but yeah i will be getting a few more eventually......figure i get 6 months on this one and than see

[Anonymous]

I know everyone on this forum is all about credit cards and such, but I always offer up my personal example of being someone that had just 1 CC for 15 years.  My Fico scores for the better part of that time period were in the 790-800 range and I was approved for each of the 5-6 loans or so that I applied for during those years at the best possible rates.  Yes there is something to be said about file thickening, diversification and so on, but one can still be credit-successful with just 1 open revolver.

[dunn2500]

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@Anonymous wrote:

I know everyone on this forum is all about credit cards and such, but I always offer up my personal example of being someone that had just 1 CC for 15 years.  My Fico scores for the better part of that time period were in the 790-800 range and I was approved for each of the 5-6 loans or so that I applied for during those years at the best possible rates.  Yes there is something to be said about file thickening, diversification and so on, but one can still be credit-successful with just 1 open revolver.

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 I have a friend who has just 1 CC and auto loan.....780ish score......ill get the 3 total but lots of inquiries right now so let it cool off.....