Update: I used to pay my credit card bill once a month, now I pay it every week

For years I just paid the statement balance on the due date. Last January, my score dropped 20 points because my reported balance was high from a big purchase. My friend said the bureaus only see what's on your statement. Now I pay down my card every Friday, so the statement always shows under 10% usage. My score bounced back in about 60 days. Does anyone else do this, or is it too much work for the gain?

4 comments

4 Comments

ellioth372mo ago

Ever wonder if you're just gaming the system for a number that doesn't really matter? Like, does a 20 point swing actually change the interest rate you'd get on a loan, or is it just for peace of mind?

lilya762mo ago

My cousin got a 720 instead of 740 last year and his mortgage rate jumped a quarter point. That 20 point gap cost him thousands over the loan's life, so it's real money, not just a feel-good number. Lenders really do slice the score ranges that thin.

phoenixw112mo ago

Tell me about it. My friend missed the 760 cutoff by five points and her car loan rate went up a full percent. These tiny brackets absolutely wreck you.

lee8471mo agoMost Upvoted

Is it just me or does every single point actually cost you money in real life? @ellioth37 I definitely think it's real, not just a mental thing. My buddy was 10 points from a 750 and his insurance quote jumped like $30 a month for a whole year. That's literally $360 for being 10 points off, it's crazy how hard they punish you for those small differences.