Credit gurus....payment question

[Barbie]

I always specify closing balance because some people don't understand that the balance that is on their statement when the billing cycle closes, is the amount that is reported to the 4 major credit bureaus. (Experian, Equifax, TransUnion, and Innovis) Yes there are 4 major bureaus but most lenders do not use Innovis. So if you have a $10,000 credit card limit and rack up $9000 in charges, wait to get your bill in the mail or set your account for auto pay and pay it the day it is due, the credit card company still reported you as having a $9000 balance. This is important because utilization accounts for 30% of your score.
Here is a link to FICO's page explaining utilization.

http://www.myfico.com/crediteducation/articles/fico_scores_credit_limit.aspx

So if you are constantly charging your card, and then letting the statement cut, then paying your credit card in full, then all of those balances are reported each month and it would appear as if you arent paying them down and your score would continue to suffer due to the reported utilization.

Anything over 50% of limit is extremely taxing on your score and really anything over 75-80% will be considered essentially maxed out. That number may be as high as 90% so don't quote me on exactly 75-80%.
30-40% will be scored fair
20-30% will be scored as ok
10-20% will be scored as good
1%-9% will yield the best possible score for a person's credit file.
0% scores the same as 10-20%

What this means, is if a person is currently at 20% utilization and has a credit score of 775, they would see incremental score increases as they decrease their utilization all the way down to 1%.
That same person will have a higher score with 1% utilization than if they had 0%.

Also, the various FICO models penalize us for having more than one card carrying a balance.

With all this being said, it doesn't mean that one can not have a good credit score without paying in full before their statements cuts and letting 1% report on one card and having $0 balances on all the others. It just means their score could be even better if they danced to FICO's tune.

Hope this helps

I don't agree with this. I let my cards generate a statement with all my charges then they are set up on auto pay to pay the statement balance on the due date and I have a score in the 800s

[chronical]

I don't agree with this. I let my cards generate a statement with all my charges then they are set up on auto pay to pay the statement balance on the due date and I have a score in the 800s

Regardless of what you agree to, it's correct.

[Barbie]

Regardless of what you agree to, it's correct.

Then how is my score so high? According to what you said my score would continue to suffer

[slow99]

...

I don't agree with this. I let my cards generate a statement with all my charges then they are set up on auto pay to pay the statement balance on the due date and I have a score in the 800s

Then how is my score so high? According to what you said my score would continue to suffer

With all this being said, it doesn't mean that one can not have a good credit score without paying in full before their statements cuts and letting 1% report on one card and having $0 balances on all the others. It just means their score could be even better if they danced to FICO's tune.

[Barbie]

...

I read that but he said continue to suffer as in constantly dropping so that contradicts the part you quoted. Also he said letting only 1% post. I let all of my charges post which would be more than 1% of credit line on the account

[chronical]

I read that but he said continue to suffer as in constantly dropping so that contradicts the part you quoted. Also he said letting only 1% post. I let all of my charges post which would be more than 1% of credit line on the account

You misread it. Rather than argue against very detailed and accurate information, test it instead. I am assuming you are referring to Fico scores. Any other scores are worthless and even a bank enhanced fico are worth little.
Go to Myfico.com and pay for all 3 scores. Then order 3 REAL credit reports the same day. Add up all of our balances on the report and divide by your total available credit limit on your credit cards. Then take note of your score in relation to this percentage. Now, pay all your balances to zero except one card and let a small amount post. Pull another report after all the new statements cut and verify that the balances have all updated to reflect zero except the one. If a trade line hasn't updated, you will need to wait until it updates and pull the report again. Once you have all three reports in your hand with all zero balances, except a small $10 balance on just one card, go back to Myfico.com and pay for all 3 scores and report back what the difference was. FYI anything pertaining to credit karma, myfreecreditreport.com, credit sesame, etc etc etc etc are worthless. Just trying to help, if you aren't willing to verify this information, then you can't really dispute it. Or just take my word for it.

[Barbie]

You misread it. Rather than argue against very detailed and accurate information, test it instead. I am assuming you are referring to Fico scores. Any other scores are worthless and even a bank enhanced fico are worth little.
Go to Myfico.com and pay for all 3 scores. Then order 3 REAL credit reports the same day. Add up all of our balances on the report and divide by your total available credit limit on your credit cards. Then take note of your score in relation to this percentage. Now, pay all your balances to zero except one card and let a small amount post. Pull another report after all the new statements cut and verify that the balances have all updated to reflect zero except the one. If a trade line hasn't updated, you will need to wait until it updates and pull the report again. Once you have all three reports in your hand with all zero balances, except a small $10 balance on just one card, go back to Myfico.com and pay for all 3 scores and report back what the difference was. FYI anything pertaining to credit karma, myfreecreditreport.com, credit sesame, etc etc etc etc are worthless. Just trying to help, if you aren't willing to verify this information, then you can't really dispute it. Or just take my word for it.

I go by my score provided by discover. They say it's a fico score. That's way too much work and $ I don't need to spend on getting my score. Besides if you're over 800 it doesn't matter the few points it may or may not bump up.

My system obviously works for me since I'm in the 800s so I see no reason to change. I just have all my cards on autopay and they come out of my account on the due date