What affect on the credit score has if you donâ??t pay off your amount due in the full and intentionally leave some small balance on account each month? Does it have any influence on the credit score? Thanks, Denny
Some people (myself included) believe that accounts with a 0 balance are seen by the FICO model as closed, and therefore are not included in you utilization ratio. I just transfered by Orchard balance to AMEX Blue and left $26 on the Orchard card. Most computer type formulas involve using numbers. There is no number to represent is the account is open or closed, so perhaps the FICO program reads the balance to determine the state of the account.
Depends on whether your score is high or low. In general, higher scores are harmed by even slight balances. For some reason, if a lower score has a couple of percent utilization up to 10% or so, it goes up. http://www.creditboards.com/phpBB2/viewtopic.php?t=3207
So I guess leaving 5$ balance on the account for person with low score is going to raise up his score. Does this apply to secured card accounts as well? Thanks, Denny
Thanks for a link but I donâ??t want to go to creditboard.com â?? donâ??t like their moderators â?? I was lectured for using word â??Common senseâ? and my post there was banned because of that .. Thanks anyway, Denny
Re: Pay off or leave on some balanc Secured, unsecured - should not matter. I'm in the small balance section of the audience. Unfortunately, it means there's a "minimum finance" charge that gets paid, so what I usually do is - I pay all but $2-25 online just as the statement is about to clear. For example, Cap1 generates their statements on the 1st, so I pay online on the 31st or 30th, to within some small amount like $2. Then I pay the $2 online the day the statement is generated. There's no balance carried over, no finance charge, and I keep sending Cap1 the message that I'm not going to pay a 15% APR. There was an interesting concept I read in a mortgage forum - overpay by a small amount, so a credit is reflected.
Re: Re: Pay off or leave on some balance? I don't see how that should prevent you from going to view a graph. Oh well.
Re: Re: Pay off or leave on some balanc Really interesting â?? so how does it help if you overpay? Score increase or something else? Thanks, Denny
Re: Re: Pay off or leave on some balance? I didn't ask for you to be BANNED...are you sure you are??? ALL I DID WAS PUT YOU ON [IGNORE] that is not banning you
Re: Re: Pay off or leave on some balanc Yeah, I just read the same thing somewhere. I think I'm going to give it a try. It's kind of along the lines of paying off a loan early, I've heard that FICO gives you extra points for that too. Nobody really knows for sure on this stuff, at least the exact %'s of utilization, only Fair Isaac.
Re: Re: Re: Pay off or leave on some balance? Hi George, whatâ??s up? â??LKHâ? moderator said that I had insulted you!? That sound ridiculous to me, since from the beginning on my hanging out here at credit forums I always had respect for you as one of the knowledgeable people here and your replies on my posts were always more than welcome. If I was confronting you regarding specific issue I donâ??t think that could be characterized as offensive or insulting in any way. Neither had I had intention to insult you or anyone else. My only intention was to try to clarify issue. I want to learn and to share my knowledge with anyone interested in discussion. That is my understanding of the purpose of these boards. If we sometimes disagree about some issues â?? I donâ??t think that is a big deal. Anyway, my post was moved away to â??test postsâ? section )) because of my â??behaviorâ? !? Here is our last correspondence: http://www.creditboards.com/phpBB2/viewtopic.php?t=24450 And since I didnâ??t like the way this â??moderatorâ? was talking to me â?? Iâ??m not more interested in creditboard.com as long as they have that kind of attitude there .. There are many other great boards, so it is just matter of choice.. What can I say about your â??ignoreâ? list? Thatâ??s your right and choice. I respect that and Iâ??m not going to force anyone to reply on my posts if someone doesnâ??t feel good about it. Take care, Denny
Re: Re: Pay off or leave on some balance? Your post was not banned. You know very well that your post is there. You were lectured for badmouthing George. You can bad mouth CB all you want, but at least tell the truth.
Re: Re: Re: Pay off or leave on some balance? Uhh not again .. This is a nightmare.. There is not much difference between banned and moved to â??Test postsâ? section.. Whatever..
Re: Re: Re: Pay off or leave on some balance? Speaking about truth.. My last post that has been moved/banned from â??Credit forumâ? section because of my â??behaviorâ? to â??Test postsâ? section â?? now doesnâ??t even exist any more at â??Test postsâ? section. Now it is REMOVED completely by moderators â?? obviously they have something to hide.. Sorry guys, the above provided link doesnâ??t work any more.. Denny
