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Question about building credit with cards?
Posted on 4/17/15 at 9:08 am
Posted on 4/17/15 at 9:08 am
I've googled it a shitload and seem to find a different answer every time.
Do reports only get your balance on each statement? If I'm spending money, and pay before the statement date is that the best way to build?
Also, about the 30% of limit thing? Is that actually good to have on your statement or is it better to always run a 0 balance on each statement?
Thanks fellas.
Do reports only get your balance on each statement? If I'm spending money, and pay before the statement date is that the best way to build?
Also, about the 30% of limit thing? Is that actually good to have on your statement or is it better to always run a 0 balance on each statement?
Thanks fellas.
3
Posted on 4/17/15 at 9:13 am to STLhog
Just pay off the statement balance each month. The rest will take care of itself. If you tend to run your balances on the high end you might want to curb your spending if you have an important credit event coming up like a house purchase. As you build your profile and add cards with more credit available and higher spending limits this will becomes a non issue.
Anything over 750ish is a great score. There's no real reason to be pursuing that holy grail of the 850 credit score.
Anything over 750ish is a great score. There's no real reason to be pursuing that holy grail of the 850 credit score.
Posted on 4/17/15 at 9:23 am to VABuckeye
quote:
Anything over 750ish is a great score. There's no real reason to be pursuing that holy grail of the 850 credit score.
Oh I know.
I'm trying to build from high 600s. I did some stupid spending when I lived in California. Just trying to build smart and fast now that I live somewhere dirt cheap and have enough to pay statements pretty easily.
I have three cards, two are $2000 and one is $1500. Should I work between the three at 30% and then payoff each statement month or what?
I just read timing is sometimes key, just a little bit unclear on when to spend/pay etc.
Posted on 4/17/15 at 9:32 am to STLhog
The statement balance is what gets reported. Just keep your total reported balances under 30% and you'll be fine. Don't run a zero statement balance.
Posted on 4/17/15 at 1:53 pm to STLhog
Balances are point in time (at the time the bureau is pulled) only. Historical balances are not on the bureau. It makes absolutely no difference.
As an analyst, I pulled credit reports every week. I am very familiar with how they work.
As an analyst, I pulled credit reports every week. I am very familiar with how they work.
Posted on 4/17/15 at 2:05 pm to TheHiddenFlask
If I'm correct the only historical point that is on the report is the high credit at some point in time on the account?
Posted on 4/17/15 at 2:09 pm to TheHiddenFlask
So that being said, what builds credit the fastest?
Posted on 4/17/15 at 2:25 pm to STLhog
Time. You can't really rush it. A year or two.
Posted on 4/17/15 at 4:35 pm to VABuckeye
quote:
If I'm correct the only historical point that is on the report is the high credit at some point in time on the account?
The statement balance is what is reported to the bureaus. Even if you max out your cards every month, if you paid them all off right now, the next time the statement balance is reported to the bureaus, you would show zero utilization. Some people say that 30% is the magic number but I've also read that it varies from person to person. I did a lot of research when I was buying a house 2 years ago. I was reading the MyFico forums, where most of the posters say to keep a zero balance on all cards except one and less than 10% utilization on the remaining card to maximize your score. I tried different balances while monitoring my FICO score and mine was much higher when I got down to zero than when I was at 30%.
Posted on 4/17/15 at 5:00 pm to JonTheTigerFan
I'm aware of that. There is also a spot on the credit report that shows the highest balance the card or loan has had. If you are now at 0 balance but at some point in time you were maxed on a limit they can see that.
Posted on 4/17/15 at 5:11 pm to VABuckeye
quote:
I'm aware of that. There is also a spot on the credit report that shows the highest balance the card or loan has had. If you are now at 0 balance but at some point in time you were maxed on a limit they can see that.
Oh yeah I see what you're saying. You're talking about the highest balance. That should be your highest statement balance. If your limit stays the same, they would be able to see that you maxed out your cards. That wouldn't affect your score but if someone looking at your report wanted to nitpick they could point out that your cards were maxed out at one time.
Posted on 4/17/15 at 5:20 pm to JonTheTigerFan
Yeah. I'm not sure if it shows the date of the highest balance. I seem to think that it does though. That could trigger alarms if cards were maxed out recently and all of a sudden at 0 balances to get a loan. Just theorizing, no proof.
Posted on 4/17/15 at 5:40 pm to JonTheTigerFan
quote:
I tried different balances while monitoring my FICO score
Can't you only do this with 0%APR credit cards? Otherwise you'd be paying interest? Or am I reading that wrong?
Posted on 4/17/15 at 6:16 pm to castorinho
quote:
Can't you only do this with 0%APR credit cards? Otherwise you'd be paying interest? Or am I reading that wrong?
Provided the balance is all due to spending from the previous month, you aren't paying any interest at all unless you got a cash advance.
Posted on 4/17/15 at 6:23 pm to castorinho
At the time I just had 3 low limit cards so the interest was minimal. I was just trying to get my score as high as I could before I closed on the house.
Posted on 4/18/15 at 9:32 pm to STLhog
Pay with cash. I have 0 cards except one with work. Paid off almost all my debt and already have emergency fund. Saving for house now. Screw the credit score. Cash is king and speaks louder than a BS credit score IMO.
Posted on 4/19/15 at 11:01 am to VABuckeye
What is the ideal number of credit cards that each person should have?
Posted on 4/19/15 at 11:10 am to PrettyLights
IIRC the optimum is like 8-10 open trade lines. I'm not overly concerned with my score as I'm over the number the gives me preferred rates.
Posted on 4/19/15 at 11:16 am to VABuckeye
All I know is that having around 30 paid off mortgages on my report has made a few credit guys scratch their heads. It's all for houses I have flipped over the years but now I operate on a high 6 figure credit line so some of those mortgages have started falling off with time and my score should push over 800 one day. It stays around 730-750 no matter what I do at this point.
Posted on 4/19/15 at 11:17 am to stout
Yeah, I play the miles and points game on credit card offers and that keeps my score around the same number.
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