Did I do the right thing?

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Snowman
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Did I do the right thing?

Postby Snowman » Thu Jun 21, 2012 12:42 am

So my other thread pretty much died out, and I'm wondering If I did do the right thing. Here's the thing, My statement date for this month closes out on the 26th, but I decided to pay the balance off right now so that way It is 0 when it comes to reporting time. But I was reading on this forum, that I should have a small balance so that it shows activity on the card. Did I do the right thing by paying it off a week early? and should I use my card for something small (i.e starbucks or something) or just leave my balance at 0. So that way when it reports, the balance is at 0, and is that a good thing that will raise my CC score, or will it hurt it?
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MemberSince99
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Postby MemberSince99 » Thu Jun 21, 2012 3:34 am

If you are just worried about your score leaving 1% to report should give you a higher score than 0%, as you show use of the card, all other things being equal.

In reality is it a big deal? In most cases no, though Citi for one will not approve you with a 750 plus score if you have 0 balances on your revolving accounts (at least they wouldn't approve me and that was the reason given). But in reality, dealing with sane companies, it won't matter.

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Postby Snowman » Thu Jun 21, 2012 11:07 am

Ah okay. I was wondering I I put something small, like maybe starbucks or coffee bean or something like that, it would be a good thing. Or if it was better just paying off everything before my statement date closes (for me it's 26th).
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Postby FastSRT8 » Thu Jun 21, 2012 11:27 am

I'm definitely older than most posting here but here is my words of wisom.

Don't carry revolving debt if you don't have to. Why??? To improve credit score??? That's rediculous and in these poor economic times a crazy thing to do.

Bottom line... if you have $$ in a bank account AND have good credit as in no late charges or huge revolving lines then the Banks will come to you.

I firmly believe as the economy continues to slide and people experience pain, these banking institutions will more covet clients who show financial responsibility and who have cash on hand.

Huge lines of credit means nothing if you can't afford to pay. It's more of a danger to people as the temptation is there to use it.

Go the longer but safe route my friend (as I did) for if you were forced to declare bankrupcy can you imagine how much harder it would be to repair that?
Carpe diem quam minimum credula postero!

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Postby Snowman » Thu Jun 21, 2012 11:40 am

Fast I agree. I totally believe in paying off my debt and keeping my CC use to a minimum. Pretty much all I wanted to know was If I did the right thing and brought my balance to 0 by paying it off nearly a week early or not. And yeah, I intend to pay back anything I owe. I've never been late on a month (only had a CC since the end of April of this year and paid off the first 6/1/12 and the other yesterday). You're right about the huge lines of credit. I don't have much of a line but I know of people who have 10k+ and 20k+ lines and some of them are maxed out. I just want to keep my score as high as possible, so that way when I need something on credit (i.e. car payment, insurance payment, etc. it'll be at least a little bit lower rate). And I can only Imagine what people go through when declaring bankruptcy, and how hard it would be to repair it. Sometimes It's caused by people doing it themselves and wanting to keep up with the Joneses and other's through no fault of their own.
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Postby FastSRT8 » Thu Jun 21, 2012 12:17 pm

Snowman,

Yes it is true... the Jones' are a problem and some would say a close relative of the DEVIL!!! LOL
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Snowman
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Postby Snowman » Tue Jun 26, 2012 1:07 pm

There was another question that popped into my head. Lets say I use my CC to fill up my gas tank, maybe buy food etc. and the bill comes to a little bit over 300$, but I pay the bill off before the statement date closes. Well my CC score be affected by the utilization during the month, or if I pay it early and leave a 0 balance it will increase my score? I'll clarify if need be
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Postby Ratfacedudeguy » Tue Jun 26, 2012 2:54 pm

If you pay the balance off before the reporting date (which may or may not coincide with the statement closing date) then the $300 you had charged on the card would for all intents and purposes be stricken from the record when it comes time to report. I don't think it'd even be reported as a "high balance" even if that was the most you had ever charged to the card.
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Snowman
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Postby Snowman » Tue Jun 26, 2012 3:39 pm

Okay. The only thing I was wondering about was the fact that I did not want my utilization to be reported that high. It's like if I get near the max of my limit (700 $) but pay it off before the statement date closes, I do not want the utilization to be reported as that high...I just was just curious because I wanted to pay off my balance for the reporting date, but while I use my CC the utilization will on up, and I did not want it to be included when it comes to reporting times. Hopefully my post makes somewhat sense, and if need be I'll clarify.
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Postby agp » Tue Jun 26, 2012 3:51 pm

It might make a differene, but the difference probably won't be significant enough for you to notice. Just pay your bills on time, keep utilization under 10%, or 20%, or 30%, and don't get arrested. Keep that up for a few years and you should not have to worry about your credit score.

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