Credit Card/Score question

[deliveryman]

From my own research, everything you said is correct from your 2nd and rd paragraph, i'm following those guidelines currently. Utilization at around 25%, it's high vs national average but once I get higher credit limit it will lower.

Yep, the inquiries got me, I was an idiot. Got 4 of them in one week. But correct me if this is wrong, if you have a bunch in a 2 week span, I read that it's counted as like "shopping around"? It won't hurt your score THAT badly, supposedly. I monitor my score, and it seems like the 4 inquiries didn't affect me much, in fact I went up 20 points this month, no idea why since I went on a credit card application spree 2 weeks ago. Maybe they were reported but not counted so heavily?

Credit applications matter much less than usage.

If you're using your CC frequently and then paying off the balance in full every month (the best thing you can do to build your credit rating), something as small as applying for other CCs is nominal.

[Underboss]

But don't you face even less risk if you pay it off like 1-2 weeks before? What penalty do you get for paying it off way before the due date, if any penalty?

You don't get any penalty for paying 1-2 weeks before, the thing is the payment due date for the following month will be earlier than the one you had in the previous month because of how early you paid. But no...no penalties.

[deliveryman]

You don't get any penalty for paying 1-2 weeks before, the thing is the payment due date for the following month will be earlier than the one you had in the previous month because of how early you paid. But no...no penalties.

Sorry, that's not true.

Paying early does not change your billing cycle.

At least in Canada... I don't see why that would be the case anywhere else, though.

[-Kev-]

I have a question. I bought an item that costed 3,700$ and the card that i used to buy it has a 6,000 credit limit. My score went down almost 20 points, if the use goes below 30% will my score go up again?

That's 61% of your credit limit. Unless you have other credit cards that bring your revolving credit up. But if this $6k credit card is your only card, that is 61% utilization.

[Underboss]

That's 61% of your credit limit. Unless you have other credit cards that bring your revolving credit up. But if this $6k credit card is your only card, that is 61% utilization.

I have 4 more, but the balances is less than 1,000.

[deliveryman]

I have a question. I bought an item that costed 3,700$ and the card that i used to buy it has a 6,000 credit limit. My score went down almost 20 points, if the use goes below 30% will my score go up again?

Yes, if it stays below 30%.

But it's really not that simple. The algorithm they use to determine credit score is insanely complicated.

This is just more of a guideline.

[-Kev-]

Credit applications matter much less than usage.

If you're using your CC frequently and then paying off the balance in full every month (the best thing you can do to build your credit rating), something as small as applying for other CCs is nominal.

What if you don't pay in full, what if you pay half? Or what if you pay the minimum payment due? Would that still be a positive on your report? I can't imagine creditors are against minimum payment or less than paid in full, because of the interest they gain from it, it would benefit them.

[deliveryman]

What if you don't pay in full, what if you pay half? Or what if you pay the minimum payment due? Would that still be a positive on your report? I can't imagine creditors are against minimum payment or less than paid in full, because of the interest they gain from it, it would benefit them.

Well, lenders (credit cards) are different from credit bureaus (credit scores).

Your lender (banks, trust companies, retailers, etc) like it when you pay interest, however the credit bureau that the lenders report to, will adjust your score accordingly (they are indifferent in that regard)

[-Kev-]

I have 4 more, but the balances is less than 1,000.

Add your entire credit limit, from all cards. So if you have $8,000 total from all cards, and no other balances other than $3,600, you are at exactly at 45% utilization. National average is 17%, and like DM says 30% and below is fine.

[Underboss]

Add your entire credit limit, from all cards. So if you have $8,000 total from all cards, and no other balances other than $3,600, you are at exactly at 45% utilization. National average is 17%, and like DM says 30% and below is fine.

19,200 all cards (credit limit).