@chasmfiend1995 wrote:Hello! I have two questions. I have opened a chase card in January and I am trying to increase my chances of a CLI come the 6 month mark. To do this, I am allowing a high balance to report every statement and paying in full the same or next day. Question 1: Since chase reports on statement day, and when paid to zero, is it more helpful for fico 8 to pay the next business day or after I see the score change on karma/experian/fico? OR pay the same day.
My thought process is that maybe paying same day overrides the big balance paid and posts 0 balance on the credit report, giving me an all zero penalty. Any ideas?
Question 2: Will allowing the big balances to report affect my fico 9 score? I have heard on here and other places that fico 9 tracks utilization trend, for example if you normally report 80% utilization and one month report 20% or vice versa it may effect the score negatively.
I am kind of lost here and would really appreciate some knowledge from you all!
FICO 8 and FICO 9 do not have memory when it comes to reported utilization.
FICO 8 and FICO 9 only care what the balances are at the time a score is pulled.
Creditors and FICO 10T do care about balances over time, typically:
carried balances = bad
balances paid off in full monthly = good.
ideally, at the moment you're about to apply, your reported balances on your cards look like this AZEO (all zero except one):
$20
$0
$0
$0
$0
until the mortgage people spend more time with FICO 10T and figure out how it works, we don't truly understand yet how reported balances figure into 10T scores on files that pay off their bills in full every month.
I have a feeling it won't matter and that any juice that you can game out of FICO 10T by manipulating reported balances will only be suggested for people actively mortgage shopping
@chasmfiend1995 wrote:Hello! I have two questions. I have opened a chase card in January and I am trying to increase my chances of a CLI come the 6 month mark. To do this, I am allowing a high balance to report every statement and paying in full the same or next day.
That's not good for your FICO scores.
Question 1: Since chase reports on statement day, and when paid to zero, is it more helpful for fico 8 to pay the next business day or after I see the score change on karma/experian/fico? OR pay the same day.
It doesn't make a difference.
My thought process is that maybe paying same day overrides the big balance paid and posts 0 balance on the credit report, giving me an all zero penalty. Any ideas?
It doesn't make a difference.
Question 2: Will allowing the big balances to report affect my fico 9 score?
Yes it's bad for your scores.
I have heard on here and other places that fico 9 tracks utilization trend,
No you didn't hear that here. It's not so.
for example if you normally report 80% utilization and one month report 20% or vice versa it may effect the score negatively.
That's fiction.
I am kind of lost here and would really appreciate some knowledge from you all!
@chasmfiend1995 wrote:Hello, I was given I small CLI relative to my income. So I give them a call when approaching the balance just to be on the safe side. 95-100%. Yes it hits my scores, but I pay to zero and I am gardening currently so it has no real impact.
If you're concerned about your scores you should not report any balances greater than 28% of the limit.