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dhadgear

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Is it a good idea to pay-off your credit card before the closing date?
I never carry a balance,every month I pay what I owe before my closing date, every month I carry a zero utilization according to KC, is it a good or bad thing to do, even though I put about $500 on each of my cards during a month time period, daily purchase's,should I show I'm using some utilization? Do the credit bareau's recognize that I'm actively using my accounts?

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By the time your staement arrives to you in the mail, your utilization has been already reported to the CRA....I wait for this time to pay my CCs in full each month. However I never use more than 20% at any time on any CC I have. This has allowed me to rebuild my credit after a messy divorce and low 300 ish CS to a lil over 700 CS in about 3 years time. I see that you pay before the closing date...thats good to however, keep in mind that you WANT to demonstrate positive useage of credit as well as the ability to pay it off sooner than later. Maybe consider paying it to under a certain %, then wait for the statement and pay if off. I know it seems like a game to pay twice a month but in doing this myself at one point I was rewarded with huge jumps in my scores doing exactly this. I now keep a financial diary of what works and what doesnt. Hope this helps.

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For the best FICO scoring you always want one card to report a balance less than 10% of it's credit line. You can let a small balance report at statement time and then pay it off before the due date.

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Good job for keeping your utilization so low. As long as you contiue to do that and keep your utilization in the single digits it should matter whether or not you pay the cards off before the close date. I pay my cards off every month also. I have 5 cards that I put all my spending on. If its getting close to the close of the statement and I have a large amount of charges, I pay it down so once its reported to the credit bureau it shows I still have a low utilization. Doing it this way usually doesn't affect my credit score.

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