True or False?? A decent way to bump up your credit score..... | TigerDroppings.com

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UFownstSECsince1950
Florida Fan
Member since Dec 2009
27747 posts

True or False?? A decent way to bump up your credit score.....


Buy a credit card and fill up your tank of gas once per month. Obviously pay off the $60 immediately, but make that your only purchase every month. Do this for a year or two.

Keep in mind I have never owned a credit card in my life (other than a Dillard's or Macy's card for a day or two).







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I Love Bama
Alabama Fan
Alabama
Member since Nov 2007
32197 posts

re: True or False?? A decent way to bump up your credit score.....


Getting any credit card and paying it off monthly will help your credit.





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BACONisMEATcandy
LSU Fan
Delta, Amex, & Über Threads
Member since Dec 2007
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re: True or False?? A decent way to bump up your credit score.....


True.... But why not just put everything you purchase on your card and pay it off each month





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UFownstSECsince1950
Florida Fan
Member since Dec 2009
27747 posts

re: True or False?? A decent way to bump up your credit score.....


That is my question. I was told to not do that. Supposedly you can boost your credit much higher & much faster by only making one small purchase every month.

Figured someone on here would know the reasoning behind this, or whether that's complete bull shite or not.






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LSUtoOmaha
LSU Fan
Nashville
Member since Apr 2004
21166 posts

re: True or False?? A decent way to bump up your credit score.....


I won't really make a difference as long as your balance is less than 30% (I think?) of your credit limit.





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UFownstSECsince1950
Florida Fan
Member since Dec 2009
27747 posts

re: True or False?? A decent way to bump up your credit score.....


Ok, maybe that's the key (less than 30%)

Grazie

Eta: another dumb question.....but does it matter what type of credit card I get for the sole intent of building up some credit? I don't want/need anything for making regular purchases or even sudden/unexpected/massive purchases. So I'm not really worried about interest rates or late fees. Will any old regular credit card from my local bank do?



This post was edited on 3/18 at 11:35 pm


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I Love Bama
Alabama Fan
Alabama
Member since Nov 2007
32197 posts

re: True or False?? A decent way to bump up your credit score.....


Yes





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UFownstSECsince1950
Florida Fan
Member since Dec 2009
27747 posts

re: True or False?? A decent way to bump up your credit score.....


Yes to the first question or yes to the last question?





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I Love Bama
Alabama Fan
Alabama
Member since Nov 2007
32197 posts

re: True or False?? A decent way to bump up your credit score.....


Any card will do





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UFownstSECsince1950
Florida Fan
Member since Dec 2009
27747 posts

re: True or False?? A decent way to bump up your credit score.....


10-4, appreciate it bubba





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BACONisMEATcandy
LSU Fan
Delta, Amex, & Über Threads
Member since Dec 2007
41647 posts

re: True or False?? A decent way to bump up your credit score.....


Might as well get something with good rewards... They will pay you to use the card





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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
29995 posts

re: True or False?? A decent way to bump up your credit score.....


quote:

I won't really make a difference as long as your balance is less than 30% (I think?) of your credit limit.


Correct, but even if you go over 30% it won't have any long-term impact. You get dinged a small amount when your revolving balance > some percentage of your total amount, but if you are able to pay it off in full anyway whenever you need to then you might as well use the card. Eventually either your limit will get raised enough for it not to matter anymore.






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JonTheTigerFan
LSU Fan
Central, LA
Member since Nov 2003
4711 posts

re: True or False?? A decent way to bump up your credit score.....


quote:

Ok, maybe that's the key (less than 30%)


To maximize your score at a point in time, have less than 10% of your utilization report. It doesn't matter whether you spend $10 or $1,000 per month, as long as you pay it down before the statement date, the credit bureaus won't know what you've spent. The credit card company only reports your balance every month and utilization percent is a MAJOR factor in determining your FICO score. So, as Bacon said, just get a rewards card and use it like a debit card then pay it off before the balance posts on your statement every month.

Also, if you're looking to boost your score, look into a "credit builder loan" through a local credit union. You don't get the money upfront but rather put a certain amount of money in an account every month and you get to keep the money at the end of the term.






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Catman88
LSU Fan
Baton Rouge, LA
Member since Dec 2004
39642 posts
 Online 

re: True or False?? A decent way to bump up your credit score.....


Paying off your CC each month has nothing to do with your CRA Score aside from utilization. What it does do is keep the card active and in favor with the bank issuing the card. If you had a card and didnt use it for years they may close it which can hurt your debt to credit ratio. Also paying off your card monthly doesnt always result in a 0 balance on your report. It depends on when the bank reports. If you have a 500 limt credit card and its your only one and you spend 150 on it a month but pay it off on the 20th and your bank reports on the 19th then your credit score will take a hit for being at 30% even though you pay it off monthly.

There is a lot of info online about when banks report as many people watch this so google your bank. Some move around like HSBC and Capital One for example its best to pay a few days before your due date while Chase reports the day of.

Bottom line its a good idea to know the day of the month that the CC company reports. Otherwise you can do harm while you think you are doing a good thing.






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Tmacelroy12
LSU Fan
Houston
Member since Aug 2012
5489 posts

re: True or False?? A decent way to bump up your credit score.....


quote:

True.... But why not just put everything you purchase on your card and pay it off each month

Don't know if he has a fixed income. If he is in college, then yeah, I'd definitely recommend this.

I know I didn't have a steady CF in college.






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AUtigerNOLA
Auburn Fan
New Orleans, LA
Member since Apr 2011
10117 posts
 Online 

re: True or False?? A decent way to bump up your credit score.....


quote:

True.... But why not just put everything you purchase on your card and pay it off each month


This depends on your credit limit I think. Whenever your balance is close to your limit, you get dinged for that I'm pretty sure. You want to have your balance regularly at 30% or below the limit. Thats at least what I have gathered from these boards and from credit people.






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Catman88
LSU Fan
Baton Rouge, LA
Member since Dec 2004
39642 posts
 Online 

re: True or False?? A decent way to bump up your credit score.....


You can go up to 99% every month and never get hit so long as you know the day that your bank reports and pay it off before then.





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Shankopotomus
New Orleans Pelicans Fan
Brian Roberts Fan
Member since Feb 2009
18305 posts

re: True or False?? A decent way to bump up your credit score.....


quote:

To maximize your score at a point in time, have less than 10% of your utilization report. It doesn't matter whether you spend $10 or $1,000 per month, as long as you pay it down before the statement date, the credit bureaus won't know what you've spent. The credit card company only reports your balance every month and utilization percent is a MAJOR factor in determining your FICO score. So, as Bacon said, just get a rewards card and use it like a debit card then pay it off before the balance posts on your statement every month.


One little thing - I was in a class recently about credit scores and we learned that the reporting date from your credit card to the credit agencies is NOT necessarily your statement date...so for instance if you ran it to the limit every month but paid it off you might look to the credit agency as over-leveraged even though you paid it off on time. Just an FYI






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JonTheTigerFan
LSU Fan
Central, LA
Member since Nov 2003
4711 posts

re: True or False?? A decent way to bump up your credit score.....


That's correct. I don't really worry about it unless I'm trying to get new credit. Then I pay them off well before the due date just to make sure they report a zero balance to maximize my score. Well, I actually let one report a zero balance and the other less than 10%. That seems to be where my FICO score is highest. I have FICO ScoreWatch and I've tracked my score for over a year now.





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