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$2 Bal for max FICO


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There is a theory floating around about leaving a balance of $2 or near 1% of available credit at/upto your Credit reporting Date (CRD) for maximizing FICO scores.
CRD means when that credit card will report to the Credit Bureaus.It can be the day onor after the payment due date or Statement balance date.The way I am explained is

 

You started with a previous statement balance of $0. If you spend $200 from the day after statement balance date but upto your payment due date and if your statement closes with on time payment of the minimum balance due but not exactly the statement balance of $200 it will tank your scores.

Your FICO scores are ENHANCED if you pay down to $2 before the Payment due date (meaning pay $198 out of $200 and leave $2 balance) and then PIF before the statement balance date. The Credit Bureaus will show

$0 Balance; last statement Balance: $2 is it? or

pay after Statement Balance date and it will report a balance of $2 which is good for utilization and enhanced FICO score.

 

I have 06/28/2014 as my payment due date.

I paid $198 on 6/24/2014 leaving a balance of $2 before payment due date.  I have $2 due before 6/28/2014.

I paidoff $2 before 06/27/2014. I entered a new $2.15 transaction on 6/27/2014.

My statement cuts on 3rd July2014.

 

Now do I pay $2.15 before 3rd July 2014 or I should have paid it before June 28th, 2014. There is a nearly 4-5 days separation between statement Balance date and Payment due date.

 

 

Please help. Its so confusing. My confusion lies in whether the CRD is the date after payment due date or is it after statement balance date.  Would you payoff any new charges incurred on the credit card before statement closing date of July 03, 2014.

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Look...the only credit scores we're allow to see are either FAKOs (made up by the CRAs and completely worthless) or the FICO Consumer Score (which is closest to the FICO Bank Card Score).  The FICO Bank Card Score is used by credit card companies to predict who they will make money on. 

 

This means CCs want FICO Bank Card Scores in the low to mid 600's.  People with scores in that range CARRY BALANCES...the CCs get to charge interest (And occasional late fees or over limit fees).

 

You can drive yourself nuts trying to scam the system.  Its not worth it.  The tactics you describe MAY affect your FICO Scores...but...it will not help you get a quality credit card.

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It all depends on what you want. If you want to avoid paying interest, then PIF on the NEW BALANCE on your statement every month.

 

What you charge in the month will show up as your usage. $3000 used, $3000 paid by due date and another $3000 used in the month: next month the CRAs will report $3000. Same scenario, but charge $4000 in the month, CRAs will show $4000 usage. 

 

But PIF the $4000 by the next due date, still no interest paid.

 

If you want to buy a house, then keep the usage to under 30% of total credit lines. That $4000? better have at least $14K credit available.

 

If you want a new car, better have no (or only really old) lates on auto loans.

 

If you want any old credit card, then @willingtocope's advice is correct. If you want premium cards, that pay miles, or hotel points or really good cash back options, better keep the usage low. Like under 20% if possible.

 

But if, like many or most of the posters at this forum, you are trying to get any credit at all, then get your old negatives at least two years in the past, and take meticulous care of whatever credit you can get: car loan, mortgage from FHA or VA, etc. If you didn't default on all your CCs, and the ones you didn't default on didn't cancel you, then PIF every month, as soon as you can, and keep them low enough on your monthly reporting so that you start to appear the be the good credit risk that you are learning to be, again.

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@ WinstheBattle

 

all you say is absolutely correct, however, I want to understand if

 

a) by PIF. either on Stmt Bal date or Payment Due Date does it affect FICO scores?

 

B) by having $2 Balance on or before Payment Due date do FICO scores change/increase/decrease

 

c) by having $2 balance PIF before Statement date if it makes a difference in BOOSTING FICO scores

 

d) having $2 balance PIF before Payment Due Date if it makes a difference in Boosting FICO scores

 

If all you do is PIF before Payment Due Date does it help any? I m told it doesn't? meaning having PIF to Zero really doesn't boost FICO? Having 1% if available credit as balance Boosts FICO.

 

I have a current balance of $2.15 on OpenSky CC. I have a balance of $0 on 6/28/14. OpenSky reports to CRA's on Statement Date (lets assume that). Do I pay $2.15 now before it reports to CRAs.

 

You ask what I want? Good Question

 

I want to apply for AMEX & FNBO credit cards before 3rd July 2014. That's it. I want to be approved for it. My medical collection is atleast beyond 2 years old. I have a Zero balance now. My FICO is 698 Credit Sesame is 675. I m afraid of DENIAL over & beyond adding these two inquiries on EX. (preferably June 30th). EQ & TU is security Freeze. I m anticipating 2 medical collection accounts to go on CRA's before July end.

 

If I Fail at approval on these two cards its a setback for until all my baddies are off the EQ & TU.
I m talking about Credit Report on my Wife only. the issue I m bringing is to AppSpree before my Revolving CC Account reports or wait until the 4th when my balance on OpenSky CC shows Zero and helps boost FICO and then apply for AMEX or FNBO.

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@WTC

 

You are allowed to pull Experian FICO score from myfico.com. Its still FICO 08 BankCard Score. Its what banks look at when giving credit. If below 700 kinda doubtful if you will get approved. Above 700 very likely to be approved.

 

Also the reason to apply now is EX is the highest FICO BankCard Score amongst 3 bureaus now.
EQ & TU on Ice.(557 EQ & 495 TU FICO 08 BankScore).  I m by no means trying to scam the system, I m only wanting to be APPROVED for a unsecured CC. given my circumstances/scores. Also, if I don't apply now within the next thre week its very likely that a medical collection account will get reported to CRA's.

Its a chance I get once with showing only 1 medical collection account versus 3 medical collection accounts.

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Nothing is going to improve your scores instantaneously. 

 

My advice is to pay in full before the statement is produced.

 

One collection...three collections...doesn't matter much.  But again, its unlikely ANY collection (particularly a medical collection) prevents a CC company from wanting another sucker for a customer.

 

Here's my basic advice:

 

1.  Open a checking account at either a local credit union or a national bank.

2.  Have your paycheck direct deposited.

3.  Get a debit card (in effect, its the same as having a "secured" card, but you don't pay a fee if you maintain a minimum balance.  Unlike a secured card, you do have immediate access to your full "deposit").

4.  Use the debit card for "plastic".

5.  Wait.

6.  After 3-9 months, your bank will offer you a credit card.

7.  Use the credit card...but pay in full each month...do not get suckered into carrying a balance.

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