Pay off cards before new apps?
Mar 2, 2013 | 4:34 pm
#16
Join Date: Apr 2012
Posts: 1,183
Nope. Citi is/was not special at all. What do you think makes Citi special?
Mar 10, 2013 | 12:16 pm
#17
Join Date: Dec 2008
Posts: 378
Nope. The only number that shows up on your report (for each account) is the balance on the day of the month that the account info was sent to the bureaus. For all but a few issuers, that day is the same as your statement closing date. US Bank is a notable exception, which reports the balance on the 1st of the month, regardless of your statement closing.
The best way to maximize your score prior to new applications is to pay off all your cards, except one, in advance of the statement closing date -- that way, they all report zero to the bureaus. For the last card, let a small balance report (say 5-10% of the limit). Doing this will maximize your score when your report is pulled, as it will show everything zero except for the one card.
Note that doing the above is probably not necessary, as unless your regular utilization is high (e.g., >30%), it probably won't improve your score TOO much. However, if you really want to optimize, the above the way to do it.
The best way to maximize your score prior to new applications is to pay off all your cards, except one, in advance of the statement closing date -- that way, they all report zero to the bureaus. For the last card, let a small balance report (say 5-10% of the limit). Doing this will maximize your score when your report is pulled, as it will show everything zero except for the one card.
Note that doing the above is probably not necessary, as unless your regular utilization is high (e.g., >30%), it probably won't improve your score TOO much. However, if you really want to optimize, the above the way to do it.
Mar 10, 2013 | 12:21 pm
#18
Join Date: Apr 2012
Posts: 1,183
I've read in several sources that your aggregate credit limit on all cards divided by your aggregate credit card balances determines your credit utilization ratio. If so, it wouldn't matter if you utilize 90 percent of the credit on one card and none on nine others or if you utilize 9 percent of the credit available to you on 10 different cards -- your utilization ratio would be the same either way. Is this not true?
Mar 10, 2013 | 9:05 pm
#19
Join Date: Jan 2013
Posts: 21
I have always been worried about paying off accounts prior to a round of applications, but it hasn't seemed to matter.
This is with a ~780 score, $120k total credit, with about $9-10k of balances (most of it on one card, a 0% offer with 80% utilization). I have a 13 year credit history.
I was approved for 5 cards last week (Amex biz platinum, ink bold, US air, AA platinum, United explorer) and 2 cards in January (Amex platinum, sapphire preferred). All were instant except for Chase, which had me reallocate some credit and approved.
This is with a ~780 score, $120k total credit, with about $9-10k of balances (most of it on one card, a 0% offer with 80% utilization). I have a 13 year credit history.
I was approved for 5 cards last week (Amex biz platinum, ink bold, US air, AA platinum, United explorer) and 2 cards in January (Amex platinum, sapphire preferred). All were instant except for Chase, which had me reallocate some credit and approved.