Comments on: Annoying Myth: Paying off Full Each Month Doesn’t Build Credit Scores – Episode #106 http://www.videocreditscore.com/annoying-myth-paying-off-full-each-month-doesnt-build-credit-scores/ Tue, 24 Jan 2012 18:29:53 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: awjolls http://www.videocreditscore.com/annoying-myth-paying-off-full-each-month-doesnt-build-credit-scores/#comment-432 awjolls Thu, 29 Jan 2009 05:08:08 +0000 http://www.videocreditscore.com/?p=1662#comment-432 Andy, aim for 10% of your credit limit used. This means that your closing date amount should be $1,000 if you have a $10,000 limit, for example. My score seems to drop 7-10 points when I go above the 10% limit number, but then the points return when I get my credit utilization back down -- usually by not reducing usage but pay paying 2-4 times a month versus just once. Andy, aim for 10% of your credit limit used. This means that your closing date amount should be $1,000 if you have a $10,000 limit, for example. My score seems to drop 7-10 points when I go above the 10% limit number, but then the points return when I get my credit utilization back down — usually by not reducing usage but pay paying 2-4 times a month versus just once.

]]> By: awjolls http://www.videocreditscore.com/annoying-myth-paying-off-full-each-month-doesnt-build-credit-scores/#comment-431 awjolls Thu, 29 Jan 2009 05:07:12 +0000 http://www.videocreditscore.com/?p=1662#comment-431 J, Here's what I do. Pay your credit cards every two weeks or every week. This is easier than playing the game of paying off before the statement or closing date. This way some balance is probably reported but 1/4 or 1/2 what it would be. Does this help? J, Here’s what I do. Pay your credit cards every two weeks or every week. This is easier than playing the game of paying off before the statement or closing date. This way some balance is probably reported but 1/4 or 1/2 what it would be. Does this help?

]]> By: Andy http://www.videocreditscore.com/annoying-myth-paying-off-full-each-month-doesnt-build-credit-scores/#comment-430 Andy Wed, 28 Jan 2009 03:26:03 +0000 http://www.videocreditscore.com/?p=1662#comment-430 Hey Andy, I am trying to improve my credit so I can get approved for a mortgage. The loan officer I am working with told me to pay my credit balances down to 30% of their limit and to not pay them off in full. This will help my score I think, because I am close to maxed out on a couple of cards, but are you saying that it would be better to pay them to zero and then leave them open? I am planning on using my tax return money to pay down my balances and just want to make sure I do the best thing to improve my credit. Thanks, Andy Hey Andy,

I am trying to improve my credit so I can get approved for a mortgage. The loan officer I am working with told me to pay my credit balances down to 30% of their limit and to not pay them off in full. This will help my score I think, because I am close to maxed out on a couple of cards, but are you saying that it would be better to pay them to zero and then leave them open? I am planning on using my tax return money to pay down my balances and just want to make sure I do the best thing to improve my credit.

Thanks,
Andy

]]> By: J http://www.videocreditscore.com/annoying-myth-paying-off-full-each-month-doesnt-build-credit-scores/#comment-428 J Sat, 17 Jan 2009 21:35:23 +0000 http://www.videocreditscore.com/?p=1662#comment-428 First, great site! Here's my question for you: Do you pay your bills off in full before the statement cuts or after the statement cuts(i.e. after you get an online or paper bill)? If you pay your bill after the statement cuts, that means your current balance is reported to the credit bureau's and it looks like you are carrying a balance even though it's paid in full. That's why someone who charges there card up to the limit, then pays in full after the statement is cut, can still appear maxed out.... I think this needs to be included as simply "paying in full" does not mean you will have a high credit score, unless A) pay off before the statement is cut or B) you have a huge credit limit (and your balances never come close to it) First, great site! Here’s my question for you: Do you pay your bills off in full before the statement cuts or after the statement cuts(i.e. after you get an online or paper bill)?

If you pay your bill after the statement cuts, that means your current balance is reported to the credit bureau’s and it looks like you are carrying a balance even though it’s paid in full. That’s why someone who charges there card up to the limit, then pays in full after the statement is cut, can still appear maxed out….

I think this needs to be included as simply “paying in full” does not mean you will have a high credit score, unless A) pay off before the statement is cut or B) you have a huge credit limit (and your balances never come close to it)

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