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Posted in Paying Your Bills
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Question By
jeersipry

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0 People Helped
Credit Fluxuations
I've had my Capital One credit card for three months now. I haven't missed a payment, and usually make multiple payments throughout the month and always more than the minimum balance. A month ago, I received a credit offer from Credit One and I accepted the offer giving me two credit cards now. I'm still making payments on time, and always more than the required minimum balance. Last month (July) I had a zero balance on my Capital One credit card and the consequences reaped a 20 point credit score increase with a status of "inactive." However, Capital One reported their balance on my card this month (August) with utilization over 80%, and suffered an 11 point loss. My question is, when is the best time to pay a bill to maximize credit score increases?

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9 Contributions
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The rule with credit cards is to maintain a small balance to be able to get the best scores out if it.  In my opinion don't use more than 30% of your available credit.  Anything over 30% will hurt you score as the utilization increases.  Since you don't know when the creditor reports to the bureau and when the bureau updates its report it is best to keep a min balance not to exceed 30% of your limit.  You also want to make sure you record small balances with combine on time payments throughout the life of the card.  This is the best formula for a good score.

Regards.

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