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Credit Rating and Utilization

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Sup /biz/,

I'm a student currently trying to give myself some credit history and boost my credit rating.
I've heard that keeping a low credit utilization ratio (not zero) is a good way to boost your credit rating.
However, what is the best way to do this? I don't want to have to pay interest each month. I was under the impression that paying off a large amount of my balance as soon as I spend and then letting the remainder roll over until the next statement is issued was the best idea (aiming for 1-10% credit utilization), but then it just looks like i've spent hardly anything to the agencies that issue your credit rating.

Would greatly appreciate any advice brodies.
>>
Use the card as much as possible, but pay the full statement balance (not total balance) and not until the day that its due. That way you'll always carry a moderate balance, but never incur a dime in finance charges.

This is because you always get at least a month to pay off charges before interest starts the accrue. So if your statement is issued on the 1st, but not due until the 20th, anything you charge between the 1st-20th will not be due until the next month even though the bank may subtly urge you to pay it right away. That's why you only pay the statement balance, not the total balance.

When the credit card reports your utilization, they simply report the account balance on that particular day. So even though you're not technically carrying a balance, you'll get reported as having a positive utilization -- all without paying any interest or other charges.
>>
>>1723865
Thanks for the reply.

So what if I've maxed out the limit within a given month - where is the distinction between total balance and statement balance? How much do I pay off on the due date? And is paying dead on the payment due date actually better than paying before ?
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>>1723871
>So what if I've maxed out the limit within a given month
Well, ideally, you won't do this. If you're having to micro-manage your credit limit mid-payment cycle, I'd suggest you either get a larger credit limit or use the card less.

>And is paying dead on the payment due date actually better than paying before ?
Yes, because it maximizes the balance that you can carry to the next month without incurring finance charges, assuming you use the card frequently.
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>>1723883
Ah I see, thanks for clearing that up.
So in this scenario:
Let's say I have a credit limit of 400, I have a balance of 200-250 and that's my total balance (either first payment on the card or completely cleared from previous balances), I have yet to receive a statment. Is it best to pay ALL of that amount as soon as my statement comes in or only ON the payment due date - this way there is no balance to carry over?
>>
Are there cards that let you autopay on the last day, then? Also, recommend a rewards CC or just one from a traditional bank? I'm a recent college grad and have been using debit, but that's a waste from both a rewards and a credit-building perspective.
>>
>>1723883
>>1723891
And isn't there the worry of your bank transfer not happening in time if you were to pay on the due date?
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>>1723891
I don't think I can explain it any simpler than pay the statement balance on the due date.

>>1723896
>And isn't there the worry of your bank transfer not happening in time if you were to pay on the due date?
Depends how you pay. If you paying from an outside source, then you need to build in time for the transfer. If you're paying from an account at the same bank that issues the credit card, you can probably safely get away with paying on the due date.

>>1723894
First priority: no annual fee.

Second priority: useful rewards/points system.
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>>1723902
There's something I'm not getting.
You say my credit utilisation will technically be zero if I pay off my statement balance on the payment due date, I would've thought that's that - "well this dude isnt utilising his cc for shit". I'm saying what if my total balance is the same as my statement balance.
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>>1723906
>You say my credit utilisation will technically be zero if I pay off my statement balance on the payment due date,
No I didn't. I said you'll owe no interest charges.

Your credit utilization is calculated by the credit agencies based on the balance information reported to them by the credit card company. This happens once or twice or month. All you care about for purposes of having a positive utilization is that there is always an account balance.

I think what you're missing is that you can have a balance on your card and not owe interest. As long as you pay each charge within the applicable statement period, you incur no interest -- even though you have a balance (and therefore positive utilization) on any given day within that period.
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>>1723943
I see now. So if I was to pay off the balance before a statement is made the utilisation would be calculated as zero ?
>>
I've asked this before but most of you faggots did not give your views. So, let's say I could get 100K in CC limit on multiple cards. What is the best way to encash these without withdrawing from ATM ? Use CC to load online wallet ?

Im moving to another country and don't plan to pay the CC and I'm not from the US.

What do you think ?
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>>1723964
>So if I was to pay off the balance before a statement is made the utilisation would be calculated as zero ?
It depends on the exact day the credit card reports your balance to the credit agency, but if it's after the date you made your payment, then yes.
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>>1723977
I told you last time, fuck off loser. We're not going to help you commit crimes you pissant little douchebag.
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>>1724000
Lol do you have a shitty credit score you moronic loser
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>>1723998
So in theory, should I try to lower my balance (not fully clear) when I get my statement so that I have a small utilisation ratio just before the closing date(s)? And then clear the rest on the payment due date?
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>>1724003
>Lol do you have a shitty credit score
It could be better, but I wouldn't exactly call it "shitty." What do you think? Surely a financial genius like you has me beat, so I'm really curious to hear your thoughts.

>>1724015
Dude, last time: pay your statement balance on the due date. Period. End of advice.

If that doesn't make sense to you at this point, then maybe you should just stick to what you understand.
>>
>>1724024
Okay mate, thanks a lot.
Thread posts: 18
Thread images: 2


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