Tips for Full Credit Card Balance Payers – Episode #57
What can you do to increase your FICO score, if you pay off your credit cards in full each month? Well, first off you are off to a great start by attacking one of the biggest FICO score pie wedges – payment history. Now you can work on keeping your balances low. Here’s how. There are two keys dates for your credit cards, the closing dates and the due dates. By making payments twice per month or even once per week, you will reduce the balance reported to the credit reporting agencies. This will lower your C.U.R or credit utilization rate and that will lead to a higher FICO credit score.
Once you’ve worked on the two biggest wedges – payment history (a given) and balances, start to work on the other pieces. Check out Lesson #2 if you need a refresher on the Credit Score Factors Pie
Andy,
I am a full balance payer, and I like to get the 1-5% rewards that come with using my credit card. If I pay off part of the balance in installments before the closing date, are my rewards likely to be reduced? Are the rewards based on my closing balance, or my usage? Thanks!
Great question. The rewards programs I’ve seen are based on total spend, not balances. I would think regulators would not like rewards programs that worked better if someone carried a balance. I know my rewards programs are based on total purchases not closing dates.