When to pay CC?

[Frügal]

Chase Freedom
$1,000 limit
~$600 used each month
Payoff each month

Our limit was just increased from $500. So, before, we were making multiple payments to keep the card from maxing out. Now, I would like to know... When should we pay the card off? I don't want them to submit a credit score update with there being a balance over half the limit of the card.

Thanks.

[Petunia 100]

Originally Posted by Frügal

Chase Freedom
$1,000 limit
~$600 used each month
Payoff each month

Our limit was just increased from $500. So, before, we were making multiple payments to keep the card from maxing out. Now, I would like to know... When should we pay the card off? I don't want them to submit a credit score update with there being a balance over half the limit of the card.

Thanks.

They report the balance as of your last statement to the credit bureaus. Therefore, you can control what they report by making a payment right before your statement closes. You can find out on Chase's website when your next statement will close.

[Frügal]

Is the statement close date, the date that payment is due?

[creditcardfree]

No. The statement close date is prior to the due date. It is the date the credit card company generates your statement. Generally, your payment is due about 25 days after the close date.

[snafu]

Unless you are applying for a major purchase like new car loan, mortgage or loan for a new Recreational Vehicle, why must you pay down the balance before the bill is generated or just before the due date?

[Frügal]

Originally Posted by snafu

Unless you are applying for a major purchase like new car loan, mortgage or loan for a new Recreational Vehicle, why must you pay down the balance before the bill is generated or just before the due date?

A balance greater than half your limit can lower your score.

Still trying to find the close date.

[disneysteve]

Originally Posted by Frügal

A balance greater than half your limit can lower your score.

Actually a balance greather than 30% of your line can lower your score. Stop using the card so much. Keep your monthly charges to less than $300. That will help your score over time which in turn will help qualify you for a higher credit limit.

[Frügal]

Originally Posted by disneysteve

Actually a balance greather than 30% of your line can lower your score. Stop using the card so much. Keep your monthly charges to less than $300. That will help your score over time which in turn will help qualify you for a higher credit limit.

Maybe I'll just stop using it altogether. Stupid credit crap.

[disneysteve]

Originally Posted by Frügal

Maybe I'll just stop using it altogether. Stupid credit crap.

Nothing at all wrong with responsible use of a credit card. We use ours all the time. But our monthly charges rarely exceed about 3-4% of our available credit lines. On our main card, we charge less than 10% of the limit.

[thefrugallery]

You can try using the card less, or ask Chase to increase your limit. If you intend to spend the same, then having a higher limit will lower your perecentage used. If you've been a reliable customer to them and have decent credit, they might give you a nice increase.

[naomibatac]

Actually, I don't see anything wrong with your practice of paying off your balance each month. If your concern is the percentage on the credit card usage, how about paying with cash some of the stuff you purchase so that you don't max out your credit card limit?

[Frügal]

Originally Posted by naomibatac

Actually, I don't see anything wrong with your practice of paying off your balance each month. If your concern is the percentage on the credit card usage, how about paying with cash some of the stuff you purchase so that you don't max out your credit card limit?

We thoroughly enjoy the reward points. So far, it has gotten us two Bodum mugs and a Bodum French Press. The ONLY reason we have this credit card is for the rewards.

I'll just work on our payment timing.

[Slug]

And regularly request credit limit increases. The worst they can say is no. Once you get a large enough limit, you never have to think about this problem again.