Hi all -- Two questions: First, how is the "current balance" on a credit card account calculated for a credit report? For the past few months, I've been paying off my (only) Visa in its entirety every month, but I do tend to charge it close to the limit ($1000) before paying it off. Does this mean I have a $0 balance on the account (since I pay it off during the grace period) or a $950 balance (the high point before I pay it off), as far as the CRAs are concerned? Second, how long after starting a new job should I wait before applying for credit? It's my first full time job after college, and so it reflects a _major_ increase in my salary (about 4.5x). I'd like to get a second card with a higher limit, so that (a) I don't have to max out my credit each month with routine expenses, and (b) so I can start building a more extensive credit history in preparation for a mortgage in a couple of years. Can I go ahead and apply for another card now, based on my new salary? Or should I wait a month or three? For the record, my TransUnion score was 675 the last time I checked (it's been four months). Thanks!
As far as the cra's seeing a $0 balance or something different, it depends on when the cc company reports. For example, I have a household mc that the statement cuts in the middle of the month but, they don't report until the end of the month. So, if I pay my balance off before the statement cuts but after the statement cuts I use the card again, the cra's would see whatever my balance is at the end of the month when the cc company reports. I hope this makes sense. My other cc companies seem to report right after the statement cuts so if I pay the balance in full and then the statement cuts, the cra's see a $0 balance. Just depends on the company reporting. Hope this helped. paw67
