Want to make sure I am doing this right -- timing of payment

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gregshelley@scrtc.com
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Want to make sure I am doing this right -- timing of payment

Postby gregshelley@scrtc.com » Mon Sep 21, 2015 9:01 am

Hey Guys, I want to make sure I am doing the right things, any advice would be appreciated. I have 5 credit cards that I have had just a few months. I am PIF the balance each statement cycle, and keeping my utilization below 10%. Does it make any difference when you pay according to your closing dates? Like as far as credit scores? my FICO is 680, with my main issues being: age of credit history, too many inquires, only 6 accounts ( I have a closed auto loan that was a co-sign and was paid in full) I guess the main thing is patience and just wait till payment history adds up.
Thanks
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Vermonster
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Re: want ro make sure i am doing this right

Postby Vermonster » Mon Sep 21, 2015 9:39 am

gregshelley@scrtc.com wrote:Hey Guys, I want to make sure I am doing the right things, any advice would be appreciated. I have 5 credit cards that I have had just a few months. I am PIF the balance each statement cycle, and keeping my utilization below 10%. does it make any difference when you pay according to your closing dates? like as far as credit scores? my FICO is 680, with my main issues being: age of credit history, too many inquires, only 6 accounts ( I have a closed auto loan that was a co-sign and was paid in full) I guess the main thing is patience and just wait till payment history adds up.
Thanks


The only advantage to paying before the statement cuts is to keep the Utilization low. You should see a steady increase in your scores, but it will take time.

Good luck
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gregshelley@scrtc.com
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Re: want ro make sure i am doing this right

Postby gregshelley@scrtc.com » Mon Sep 21, 2015 9:41 am

Vermonster wrote:
gregshelley@scrtc.com wrote:Hey Guys, I want to make sure I am doing the right things, any advice would be appreciated. I have 5 credit cards that I have had just a few months. I am PIF the balance each statement cycle, and keeping my utilization below 10%. does it make any difference when you pay according to your closing dates? like as far as credit scores? my FICO is 680, with my main issues being: age of credit history, too many inquires, only 6 accounts ( I have a closed auto loan that was a co-sign and was paid in full) I guess the main thing is patience and just wait till payment history adds up.
Thanks


The only advantage to paying before the statement cuts is to keep the Utilization low. You should see a steady increase in your scores, but it will take time.

Good luck


Thanks
Discover it $3k
BOA CR Visa Sig. $18K
Chase Freedom Visa $2K
Chase MRP Visa Sig. $5K
Cap 1 Vent Visa Sig. $13K
Citi HH Visa Sig. $8.5K
AMEX Plat NPSL
AMEX BCP $20K
AMEX Gold Delta SM $8K
BC AR + WEMC $3.5K
Cap 1 Spark Busin Visa $2K
Chase Ink Cash Busin Visa Sig. $5K

takeshi
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Re: Want to make sure I am doing this right -- timing of payment

Postby takeshi » Tue Sep 22, 2015 9:01 am

gregshelley@scrtc.com wrote:II am PIF the balance each statement cycle, and keeping my utilization below 10%. Does it make any difference when you pay according to your closing dates?

If you want to reduce the reported balances and your revolving utilization then the payments must clear before the account reports -- which is statement date for most cards but confirm with your accounts. If the payment clears after the account reports it will have no impact on the reported balance as the balance has already been reported for the cycle.

However, IIRC with Chase they will perform a midcycle update if you pay the balance down to 0.

gregshelley@scrtc.com wrote:my main issues being: age of credit history

Keep in mind that doing this (from one of your other threads)
gregshelley@scrtc.com wrote:That's why after I get 6-8 months under my belt I will consider applying for the MRP card.

Will reduce your AAoA.

gregshelley@scrtc.com wrote:too many inquires

This probably means that there are other concerns with your credit profile. If your FICO is 680 then there are probably things you need to look at and address. Keep in mind that you don't have just one score. For any scoring model you typically have a score with each CRA. Make sure you're routinely reviewing your reports. When looking at scores consider the specific scoring model and the CRA used. If a creditor uses a different model and/or CRA then they may pull a different number than the score you're relying on.

gregshelley@scrtc.com
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Re: Want to make sure I am doing this right -- timing of payment

Postby gregshelley@scrtc.com » Tue Sep 22, 2015 10:09 am

takeshi wrote:
gregshelley@scrtc.com wrote:II am PIF the balance each statement cycle, and keeping my utilization below 10%. Does it make any difference when you pay according to your closing dates?

If you want to reduce the reported balances and your revolving utilization then the payments must clear before the account reports -- which is statement date for most cards but confirm with your accounts. If the payment clears after the account reports it will have no impact on the reported balance as the balance has already been reported for the cycle.

However, IIRC with Chase they will perform a midcycle update if you pay the balance down to 0.

gregshelley@scrtc.com wrote:my main issues being: age of credit history

Keep in mind that doing this (from one of your other threads)
gregshelley@scrtc.com wrote:That's why after I get 6-8 months under my belt I will consider applying for the MRP card.

Will reduce your AAoA.

gregshelley@scrtc.com wrote:too many inquires

This probably means that there are other concerns with your credit profile. If your FICO is 680 then there are probably things you need to look at and address. Keep in mind that you don't have just one score. For any scoring model you typically have a score with each CRA. Make sure you're routinely reviewing your reports. When looking at scores consider the specific scoring model and the CRA used. If a creditor uses a different model and/or CRA then they may pull a different number than the score you're relying on.


Thanks... I Have no derogatory remarks, but only 5 credit card accounts and a co-sign auto loan paid off account. before I knew better, I thought by adding some cc accounts to get my account numbers up, It would help my score.
Discover it $3k
BOA CR Visa Sig. $18K
Chase Freedom Visa $2K
Chase MRP Visa Sig. $5K
Cap 1 Vent Visa Sig. $13K
Citi HH Visa Sig. $8.5K
AMEX Plat NPSL
AMEX BCP $20K
AMEX Gold Delta SM $8K
BC AR + WEMC $3.5K
Cap 1 Spark Busin Visa $2K
Chase Ink Cash Busin Visa Sig. $5K

Kevin86475391
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Re: Want to make sure I am doing this right -- timing of payment

Postby Kevin86475391 » Tue Sep 22, 2015 4:38 pm

gregshelley@scrtc.com wrote:Thanks... I Have no derogatory remarks, but only 5 credit card accounts and a co-sign auto loan paid off account. before I knew better, I thought by adding some cc accounts to get my account numbers up, It would help my score.


I think 5 credit card accounts is completely sufficient. As I understand it a minimum of 1-3 is recommended for building good credit, but more beyond that won't help your score - unless the extra accounts help keep your overall utilization lower, but that's a side effect rather than directly related to the number of accounts. Likewise, opening more account may lower your score due to lowering your AAoA and getting new inquiries, but again a side effect rather than directly related to the number of accounts.

Anyway, I guess what I'm saying is that you shouldn't feel any pressure to open more cards thinking it will benefit your score. At this point it would likely be more detrimental, but even once your accounts age up and the inquiries fall off, I'd still say 5 credit card accounts is just fine. You may want to open more just because you want to open more, but there wouldn't be a credit score reason to do it.

gregshelley@scrtc.com
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Joined: Fri Sep 11, 2015 1:05 pm
Location: Kentucky

Re: Want to make sure I am doing this right -- timing of payment

Postby gregshelley@scrtc.com » Tue Sep 22, 2015 5:26 pm

Kevin86475391 wrote:
gregshelley@scrtc.com wrote:Thanks... I Have no derogatory remarks, but only 5 credit card accounts and a co-sign auto loan paid off account. before I knew better, I thought by adding some cc accounts to get my account numbers up, It would help my score.


I think 5 credit card accounts is completely sufficient. As I understand it a minimum of 1-3 is recommended for building good credit, but more beyond that won't help your score - unless the extra accounts help keep your overall utilization lower, but that's a side effect rather than directly related to the number of accounts. Likewise, opening more account may lower your score due to lowering your AAoA and getting new inquiries, but again a side effect rather than directly related to the number of accounts.

Anyway, I guess what I'm saying is that you shouldn't feel any pressure to open more cards thinking it will benefit your score. At this point it would likely be more detrimental, but even once your accounts age up and the inquiries fall off, I'd still say 5 credit card accounts is just fine. You may want to open more just because you want to open more, but there wouldn't be a credit score reason to do it.


Thanks... the only other card I want is the Marriott rewards card, because we stay at those Hotels a lot, particularly The Gaylord Opryland in Nashville TN. It would benefit me for that reason. I had thought about getting rid of the slate later on, but it is the 2nd card I got, and the lowest APR after my year intro is up, so guess I need to hold onto it. Thanks for your help.
Discover it $3k
BOA CR Visa Sig. $18K
Chase Freedom Visa $2K
Chase MRP Visa Sig. $5K
Cap 1 Vent Visa Sig. $13K
Citi HH Visa Sig. $8.5K
AMEX Plat NPSL
AMEX BCP $20K
AMEX Gold Delta SM $8K
BC AR + WEMC $3.5K
Cap 1 Spark Busin Visa $2K
Chase Ink Cash Busin Visa Sig. $5K



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