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What do you do?  Let $2 report on a single credit card.  All of your other cards should report $0, which means you must pay them to $0 before the statements close.

Why $2?  Because you want the lowest amount possible to report that is greater than $0.  $2 is the most reliable number to use that will generally report and not be credited to $0.

Does this work with any cards? Do not do this with Chase, Discover or charge cards.  Chase often updates mid cycle if you pay a balance to $0, leaving you with nothing reporting.  If you want to use Discover, you need to use $3 because they will credit $2 to $0.  Charge cards are counted much differently for utilization, and it varies by scoring model.

But MyFico and CreditKarma say that my utilization is 0%.  Credit Karma is a FAKO, and although even MF will give you this number as a percentage, it is calculated as a ratio by FICO.  $2 counts as usage.

What is the goal of the $2 trick?  The goal is to get the most points possible out of FICO for the utilization portion of your scores AND to maintain it all the time.  The "all the time" part is the reason you don't use Chase cards.


More Detailed Explanation At CreditBoards

https://creditboards.com/forums/index.php?showtopic=544017

$2 Trick Will Not Work With A Charge Card https://creditboards.com/forums/index.php?showtopic=557648

« Last edited by Mendelssohn on April 12, 2016, 12:43:40 PM »

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Author Topic: $2 trick to increase FICO score.  (Read 115601 times)

Offline Venilla

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Re: $2 trick to increase FICO score.
« Reply #240 on: December 25, 2015, 12:49:23 PM »
Quote from: Marko Rubio on December 25, 2015, 12:45:14 PM
this will be your overall utilization, but you have to focus to keep also low utilization on each card
Ye Ye, I'm talking about overall utilization, trying to understand what Adam101 meant with 50k cards don't count.
« Last Edit: December 25, 2015, 12:55:41 PM by Venilla »
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Offline Josef.koney

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Re: $2 trick to increase FICO score.
« Reply #241 on: December 25, 2015, 05:32:48 PM »
Quote from: Venilla on December 25, 2015, 12:49:23 PM
Ye Ye, I'm talking about overall utilization, trying to understand what Adam101 meant with 50k cards don't count.
I never heard of such a think for overall credit line... According to what he's saying.... Ppl that only have cards of 50 k and over (I'm sure there are those...) there utilization is higher then what they actually have??!
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Offline Venilla

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Re: $2 trick to increase FICO score.
« Reply #242 on: January 14, 2016, 09:57:37 AM »
I wanna start doing this $2 trick.

Until now I used an Amex EDP but I think I'll have to star using a business card for my regular spendings in order for me to succeed. I have too many automatic billings (phone, tuition, EzPass -I don't even know on what day they'll charge- etc.), I have no patience to select a different card every time I place an order on Amazon, etc.

What business card would be the best to use (in terms of rewards for groceries, gas, and other household expenses)?
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Offline ya

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Re: $2 trick to increase FICO score.
« Reply #243 on: January 14, 2016, 10:39:49 AM »
Quote from: Venilla on January 14, 2016, 09:57:37 AM
I wanna start doing this $2 trick.

Until now I used an Amex EDP but I think I'll have to star using a business card for my regular spendings in order for me to succeed. I have too many automatic billings (phone, tuition, EzPass -I don't even know on what day they'll charge- etc.), I have no patience to select a different card every time I place an order on Amazon, etc.

What business card would be the best to use (in terms of rewards for groceries, gas, and other household expenses)?

Why not just make sure all your cards close on the same day. Go online the day before and pay them all off except leave $2 on one
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Offline Venilla

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Re: $2 trick to increase FICO score.
« Reply #244 on: January 14, 2016, 10:57:07 AM »
Quote from: ya on January 14, 2016, 10:39:49 AM
Why not just make sure all your cards close on the same day. Go online the day before and pay them all off except leave $2 on one
1. It's not so easy to calculate the closing date. You can set the due date but the time between the closing date and the due date is different on each card/bank.

2. Like I said, I have many automatic billings and some I don't even know when they'll charge (eg. EzPass). They might charge my card the day before the closing date after I make my payment an the charge can post at the same time the statement prints.
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Offline TimT

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Re: $2 trick to increase FICO score.
« Reply #245 on: January 14, 2016, 11:42:40 AM »
Quote from: Venilla on January 14, 2016, 10:57:07 AM
1. It's not so easy to calculate the closing date. You can set the due date but the time between the closing date and the due date is different on each card/bank.
CMIIW aren't they all about 3 weeks from closing till due date ?
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Offline yochiek93

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Re: $2 trick to increase FICO score.
« Reply #246 on: January 14, 2016, 11:43:23 AM »
Quote from: TimT on January 14, 2016, 11:42:40 AM
CMIIW aren't they all about 3 weeks from closing till due date ?
Yes
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Offline AJK

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Re: $2 trick to increase FICO score.
« Reply #247 on: January 14, 2016, 12:08:33 PM »
Quote from: Venilla on January 14, 2016, 09:57:37 AM
I wanna start doing this $2 trick.

Until now I used an Amex EDP but I think I'll have to star using a business card for my regular spendings in order for me to succeed. I have too many automatic billings (phone, tuition, EzPass -I don't even know on what day they'll charge- etc.), I have no patience to select a different card every time I place an order on Amazon, etc.

What business card would be the best to use (in terms of rewards for groceries, gas, and other household expenses)?

I'm currently set up to get it accomplished. Moved all spending to Ink for now and all of my recurring charges (only EZ pass) on Chase cards which can be paid (and the CR updated) right away.

Currently have an AmEx personal card set to close with $2.00 balance early next month. We'll see!
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Offline Venilla

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Re: $2 trick to increase FICO score.
« Reply #248 on: January 14, 2016, 12:19:05 PM »
Quote from: TimT on January 14, 2016, 11:42:40 AM
CMIIW aren't they all about 3 weeks from closing till due date ?
Correct.

Quote from: AJK on January 14, 2016, 12:08:33 PM
I'm currently set up to get it accomplished. Moved all spending to Ink for now and all of my recurring charges (only EZ pass) on Chase cards which can be paid (and the CR updated) right away.

Currently have an AmEx personal card set to close with $2.00 balance early next month. We'll see!
Any reason you chose Ink over any other business card?

When paying a Chase CC from a Chase bank account the balance goes down to zero immediately?
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Offline AJK

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Re: $2 trick to increase FICO score.
« Reply #249 on: January 14, 2016, 12:20:25 PM »
I chose ink because I prefer UR for me at this point. Didn't really care too much, though, this is a one time thing for me.

Chase will report a zero balance after a PIF, regardless of closing date.
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Offline Venilla

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Re: $2 trick to increase FICO score.
« Reply #250 on: January 14, 2016, 12:26:08 PM »
Quote from: AJK on January 14, 2016, 12:20:25 PM
I chose ink because I prefer UR for me at this point. Didn't really care too much, though, this is a one time thing for me.

Chase will report a zero balance after a PIF, regardless of closing date.
Even if you'll get a jump in your score?

Never realized that. Good news.
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Offline Thingywingy

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Re: $2 trick to increase FICO score.
« Reply #251 on: January 14, 2016, 11:19:05 PM »
How do you do the OP's trick if every card closes on a different date?
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Offline yochiek93

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Re: $2 trick to increase FICO score.
« Reply #252 on: January 14, 2016, 11:25:37 PM »
Quote from: Thingywingy on January 14, 2016, 11:19:05 PM
How do you do the OP's trick if every card closes on a different date?
Have them all close the same date
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Offline etech0

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Re: $2 trick to increase FICO score.
« Reply #253 on: January 14, 2016, 11:36:52 PM »
Quote from: yochiek93 on January 14, 2016, 11:25:37 PM
Have them all close the same date
Except one, I assume, which you use during the last few days of the "month" for all the other cards. And hope nothing takes too long to post.

From what I've read, the best way is to put most of your spending on business cards.
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Offline yochiek93

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Re: $2 trick to increase FICO score.
« Reply #254 on: January 14, 2016, 11:37:48 PM »
Quote from: etech0 on January 14, 2016, 11:36:52 PM
Except one, I assume, which you use during the last few days of the "month" for all the other cards. And hope nothing takes too long to post.

From what I've read, the best way is to put most of your spending on business cards.
Correct
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Offline Mendelssohn

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Re: $2 trick to increase FICO score.
« Reply #255 on: January 15, 2016, 01:00:22 AM »
No, $50K limit cards don't count for individual utilization, but they do for overall utilization.

No, you don't have all your cards close on the same date. You just pay them off BEFORE the statements close.
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Offline ya

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Re: $2 trick to increase FICO score.
« Reply #256 on: January 15, 2016, 08:57:21 AM »
Quote from: Mendelssohn on January 15, 2016, 01:00:22 AM
No, $50K limit cards don't count for individual utilization, but they do for overall utilization.

No, you don't have all your cards close on the same date. You just pay them off BEFORE the statements close.
Didnt say you have to. It just maybe easier for some to manage.
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Offline yochiek93

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Re: $2 trick to increase FICO score.
« Reply #257 on: January 15, 2016, 08:59:15 AM »
Quote from: ya on January 15, 2016, 08:57:21 AM
Didnt say you have to. It just maybe easier for some to manage.
Exactly
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Offline Mendelssohn

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Re: $2 trick to increase FICO score.
« Reply #258 on: January 15, 2016, 09:48:37 AM »
Maybe for some.  I have no issues myself and I use quite a few cards each month.
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Offline etech0

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Re: $2 trick to increase FICO score.
« Reply #259 on: January 15, 2016, 09:57:17 AM »
Quote from: Mendelssohn on January 15, 2016, 09:48:37 AM
Maybe for some.  I have no issues myself and I use quite a few cards each month.
How do you ensure that pending charges don't post between when you pay off the bill, and when the statement closes?
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