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credit score increase ?


discountmomma4
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I have 2 major credit cards and right before they report to the credit bureau’s each month I will pay them downs to 5% utilization so that when Capital one report to the agency’s the cards will report in good standing also by the utilization being low it increases my credit score.

My question, will my credit score increase each month if I keep that up or will my score pretty much stay the same if I keep my utilization at 5%?

Thanks

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Your credit card utilization rate has a big effect on your score, so keeping your balance that low will definitely have a noticeable and positive effect on your score.

However, typically, the credit card companies report the average balance, so unless you keep the utilization rate low throughout the month, you won't get as big a bang for your monthly low utilization rate.

Any way to spread the wealth around to other cards?

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So what i am learning about collections is that last long as they go unpaid and the reporting every month as unpaid it's will continue to kill your score...

Got it!  Thank you so much for my marching orders...That's why I love this site!   The loan officer just laughed me right out of the door and said i will never get 100 points not even in 100 years. See my husband qualified for a mortgage because he had the credit due to my hard work .

 

We decided to wait until my score it's to be where it needs to be in order to qualify together.

Thanks

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Is 5% the "magic number" for CC utilization? My mom is getting ready to pay off her CCs with some inherited money, she has good credit, but it can always be better. If 5% isn't the magic number, then what is?

I'm also rebuilding my credit, and have gotten an unsecured capital one card, and want to know how to get the most BANG for my buck in score increase. I realize that having low utilization/avg balance is key... Just looking for the sweet spot.

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There are like 17 defferent FICO scoring algorithms....Mortgage Score, Insurance Score, Employment Score...etc.

 

The one we are allowed to see is the FICO Consumer Score, which is close to the FICO Bank Card score.  The Bank Card score predicts who CCs will make money off of by charging interesr and occasional penalties...therefore, it includes a "utilization' factor.  Its the "sucker" score...carry a balance...pay them interest.

 

IMHO, the ideal situation is to have 1 or 2 CCs with a total of around $10K credit limit, just for emercencies,  Keep the balance at $0.

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