MeanWS6 Posted October 4, 2004 Report Share Posted October 4, 2004 I using only one credit card, although I have others, this is the one we only use. Now, every Friday, I pay go online and pay down whatever the balance is. It has a 30K limit, and I usually pay about 7-10K a week due to the business expenses. I was under the impression that if it showed I owed a large amount on my credit report, that this would lower my score. My other cards total over $70K in available credit (my income is just over the six figure mark). So does paying it off every weekend helping my score, or should I let the large balance show on my CR?My current scores are TU is 713, EX is 718, EQ is 720 Link to comment Share on other sites More sharing options...
morrow Posted October 5, 2004 Report Share Posted October 5, 2004 If it were me, I would wait and let the large balance be reported to the credit bureaus. Maybe a month or so, then I would completely pay it off.That way, it shows that you can carry a large balance and pay it off. Link to comment Share on other sites More sharing options...
breathing_easier Posted October 5, 2004 Report Share Posted October 5, 2004 ISo does paying it off every weekend helping my score, or should I let the large balance show on my CR?The key seems to be to keep the ratio of credit used to available credit at under 30%. So if you keep your $30K card at under $10K, FICO is happy. Of course, paying interest on $10K is no fun. Therefore, what you may want to do is figure out when your cc company reports to the CRAs. Let the >$10K balance report, but then pay it off before the due date. That shows you can handle credit, but you also don't pay interest. Sometimes having too much available credit (e.g. the $70K) can be viewed as a negative by FICO as "it" wonders what would happen if all of a sudden you took advantage of all that available credit. Link to comment Share on other sites More sharing options...
Ravenous Wolf Posted October 5, 2004 Report Share Posted October 5, 2004 This too depends entirely on the lending policy of creditor.I don't want to ever imply that your FICO score is full of [EXPLETIVE DELETED] although a lot of people may get that impression from me.But it is the creditor's lending policy that determines if you get approved for credit.Although they will have your FICO score sitting right in front of them, they are more than likely going to run certain calculations on you. One of them is going to be your debt ratio and certain software will attempt to make projections about you.And exactly as breathing_easier explained, you may have awesome utilization factors, but having too much open and available credit may lead a creditor to think that some day, you are going to find a beautiful 19 year old blonde, screw your credit (and other things), and then run off to Tahiti with her.Some of a creditor's concerns may be totally irrational but that is what is coded in their software.So a good FICO score is nice but more than likely, a creditor is going to run a number of other factors into their credit approval process. Link to comment Share on other sites More sharing options...
breathing_easier Posted October 5, 2004 Report Share Posted October 5, 2004 Some of a creditor's concerns may be totally irrational but that is what is coded in their software.They have 19-year-old blondes and Tahiti coded in their software?! I've always wondered about that... Link to comment Share on other sites More sharing options...
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