Credit gurus....payment question

[chronical]

Also, in case there was some confusion, your credit score does not benefit simply by using the card. The benefit comes from the length of time you have had the card open and the closing balance of the card in relation to your overall credit limit as a single trade line and as a total of balances on all cards in relation to total credit limits. If you had no credit history and opened x amount of cards and never used them for a year, your score would be the same as if you charged them all heavily and paid in full. (before the statement closed)

[chronical]

If possible, move any auto-drafts from your bank to your cards, such as car payments, utilities, phone, etc., and then pay them off each month. That make for a set of recurring charges and payments that you've already budgeted for, you just need to get in the habit of taking that extra step each month to pay the balance.

It kinda defeats the purpose of the auto-draft, but should help that score rise.

Most people don't realize that by paying with a debit card, you are not legally protected against unauthorized purchases. Some banks may refund the money back to you immediately or after a pending investigation. Some banking institutions will just stick you with the bill and there is nothing you can do. All purchases should be made with a credit card since you are protected by federal law against unauthorized purchases. Not to mention the perks such as an additional year extended warranty on purchases which is pretty automatic with prime lenders. With that being said, you can't pay an installment loan such as a vehicle payment or mortgage payment with a credit card. There are "work arounds" and exceptions but, for the most part, that is the standing policy. I did pay my TT&L with my Amex Platinum card for the spend requirement though.

[Big A]

If possible, move any auto-drafts from your bank to your cards, such as car payments, utilities, phone, etc., and then pay them off each month. That make for a set of recurring charges and payments that you've already budgeted for, you just need to get in the habit of taking that extra step each month to pay the balance.

It kinda defeats the purpose of the auto-draft, but should help that score rise.

[TeeShock]

I started buying my necessities with credit cards about a year ago and it has inflated my score a lot. Gas, groceries, gym memberships, etc. are all things I have to pay for anyways why not use a credit card at no charge. I pay them off bi monthly.

[zachary]

a 0 balance card will not help you. charge and pay in full each month before interest hits.

[jluv]

I paid off the last of my debt at the end of Feb. Mine went up a little each time I paid a big chunk on stuff, except for my truck. I paid off the last $2900 on it at the end of Feb and it brought my score down two points because the credit union closed the account. Bastards. It was only two points, so I can't be too mad, but it still irks me a little.

So, now I've got several cards with a zero balance. I know not to close them out. Is there any advantage or disadvantage to using them a little and keeping a small balance on them? I like them being at zero, but could use them for small stuff if it's gonna help my score. Or, if I'm going to make a big purchase, like a vacation or truck parts, should I put it on a card first and then pay it off immediately? Would any of that help my score at all?

[zachary]

Well the bump came in and it was pretty small for the last bit of payment.
went to 804 after the last and final 3k of debt was paid off.

which is all great but i do work in the oilfield and maybe unemployed and homeless in sub six months...so

[zachary]

That's awesome news. So just to make sure I'm understanding this right you paid the 6k in one lump sum right? And the other 3k in one lump sum also?

yes that is correct. so i am curious what it will do next month when the 3k payoff hits credit bureaus and also have no more revolving debt at all.

[vert_95]

UPDATE:

so after paying 6k off, and only leaving 3k on(and that would be total CC debt too)

score went from 761 to a 793. Have now paid the last 3k off also, so no more revolving balances at all. Will see what it does next month.

That's awesome news. So just to make sure I'm understanding this right you paid the 6k in one lump sum right? And the other 3k in one lump sum also?

[cobrajet69]

UPDATE:

so after paying 6k off, and only leaving 3k on(and that would be total CC debt too)

score went from 761 to a 793. Have now paid the last 3k off also, so no more revolving balances at all. Will see what it does next month.

Nice.


David

[zachary]

UPDATE:

so after paying 6k off, and only leaving 3k on(and that would be total CC debt too)

score went from 761 to a 793. Have now paid the last 3k off also, so no more revolving balances at all. Will see what it does next month.

[zachary]

This will be interesting...

i paid $6,000 of the debt down, and will pay the rest in full off in 30 days....

i will keep you all posted on what happens to score just FYI

[Barbie]

I didn't day you did. I said for optimal scoring, let only $2 report. The cards that you are not using are what's helping your score. Also, Citi is providing a bankcard 08 enhanced Fico and is in a scale of up to 900 instead of the standard 850 so the 842 Fico is inflated. Discover is providing you a useful score for Transunion and Citi is providing an equifax score that isn't necessarily useless but not apples to apples. Congrats on your excellent credit. Barclays currently has their US airways card that has a 50,000 mile sign up bonus which will be AA miles in the second quarter when the merger completes. They pull Transunion and give sizable limits.

I guess I felt like my score was "optimal"

[Silverback]

Elvis drinks his own and other's pee.

don't limit the man

[Roscoe]

?????????????????? whoa.

god bless.

Elvis drinks his own pee.