Hi all.... What is the best way to PIF cc balances, but still have a small balance reported to show utlization? I have not been able to figure it out. I have read threads & posts where people describe paying the balance as soon as statement is rec'vd or avail online to pay, but every month I have been doing that and my balance is just showing zero, this has been the case for almost 2 yrs. I think it is affecting the utlization aspect of my fico scores and if anyone knows of a way to "figure out the timing" please share... Thanks!
If your goal is to show a "balance", then do not pay the full amount. It also depends upon how much you use the CC. You can time things to leave a balance. The key here is to know your statement dates, look at your statements to see when your billing cycle closes. Then schedule for payment to be paid 4-5 days before you cycle closes. The main item here is to hot the date of "payment applied or posted", the best way to do this is study your past statements and reconcile dates. On-line payment os probably the easiest way to do this. The other "trick" is to not pay in full, and let the account run a balance for a few months. This will show in "account history" on your report. If you are not going to apply for credit immediately (and you can not really worry about your FICO score for a few months) then this may be an option. But, I do not think showing a small balance on your CCs will help your score that much. If it is "activity" that you are trying to demonstrate, then you may want to do the scenario of "running balances" for a few months.
Thanks! So for example I have a cc with a 300 limit. most I have charged on it is about 60 dollars.. I always PIF and as soon as I get notified that my statement is ready to view I schedule payment.. I pick a day that is at least 2 business days before the due date on the statement. So if I am understanding you correctly in my case it is less about the balance? because balance reported is zero, I am not in the market for any big purchases, I did just get my first retail or store card (Target) and I was approved for another cc. I can let a balance run for a few months and just make the minimum payment...actually I will try that for 3 months and see. I only have 1 installment loan and that is my car payment. on time never late...also drafted automatically e
You have the idea, but I recommend making more than the minimum payment.There are too many clauses out there on CCs where "default rates" kick in if you only make the minimum payments. Since you run small tansactions, say $60, pay $40 or $50 instead of the full $60 in your example.
Sad but true ccbob! I've learned to read all those "Important Account Information" stuffers with the statements. As the saying goes "The devil's in the details!"
