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Question By
rmroble

17 Contributions
13 People Helped
how do I show my cards are active without paying interest?
AMEX's FICO said one of the top two areas I could improve on was using my cc/ showing recent activity on them. I use them all the time, I just pay them off on time. I've seen some ppl suggest carrying a balance until the statement comes out, then paying it off, but my statement comes out the day after payment's due...

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Top Contributor
1884 Contributions
3681 People Helped

Thats unusual

All of my cards have about 5 days between the date the payment is due and the date the next statement is issued. 

but here is what happpens in most cases: i.e. you have a card with a $1000 limit,  You charge $300. that is reported to the CRA's  Then pay the full amount thats due by the due date. Then you go ahead and use it again and charge $275. the next month. When its reported it appears as if you only paid a minimum payment because the balance has only changed by $25.  

The big trick is to let the card report a 0 balance at least 3 times a year.  that little trick can go a long way to improving your scores. I put my cards into a rotation where i only use 1 or 2 cards a month then use another 2 cards the next month. letting the cards report a balance/pay off as often as possible. If you only have 1 or 2 cards then can be a little different. I suggest that if thats the case then you set a self imposed limit of say $50 so that your are only making large purchases on credit cards and use a debit card for smaller purchases.   

good luck

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