$2 trick to increase FICO score.

[PillanSmye]

Or just follow the forums once in a while.

Which would involve reading, unless you're using a text-to-speech application.

[Josef.koney]

Ive been following this thread.... I still can not understand why not to do it with a chase card.... Anyone?

[David Smith]

Ive been following this thread.... I still can not understand why not to do it with a chase card.... Anyone?

On most cards, if the statement closes with $2 balance and you pay that off the next day, your credit report will show the $2 balance for the next month. The issuer won't update your balances with the credit agency until the next  statement closing (or the 1st of the month, by DCU). By chase, anytime you pay in full, they immediately update your $0 balance to the credit bureaus. Having $0 reporting shows no activity, and is detrimental to your score. The optimal status is to have $2 showing on 1 card at all times.

[Josef.koney]

On most cards, if the statement closes with $2 balance and you pay that off the next day, your credit report will show the $2 balance for the next month. The issuer won't update your balances with the credit agency until the next  statement closing (or the 1st of the month, by DCU). By chase, anytime you pay in full, they immediately update your $0 balance to the credit bureaus. Having $0 reporting shows no activity, and is detrimental to your score. The optimal status is to have $2 showing on 1 card at all times.

Ahh so theoretically there's no need to pay the chase card b4 the statement comes out (bc the sec I pay the utilization will go down... correct? (Obviously I talking when having another card with 2$ on it...)

[AJK]

Yes and no.

For the time between the statement closing and your PIF, it'll show statement balance on your card. If that balance is >$2, it would be hurting your score for that period.

[newdealseeker]

Yes and no.

For the time between the statement closing and your PIF, it'll show statement balance on your card. If that balance is >$2, it would be hurting your score for that period.

So good plan would be to pay balance less $2 before statement closes.

[AJK]

You could do that, but the simpler way, depending on your goals, would be just not to use a Chase card, as discussed above. 

[newdealseeker]

You could do that, but the simpler way, depending on your goals, would be just not to use a Chase card, as discussed above.

Since the Chase card plan failed, I tried to do it with an Amex card. Today, the day before closing, I got an unexpected credit, maybe not exactly unexpected but I was waiting for a while to get it and didn't expect it now more than a week ago.
So that doesn't leave me with any time to take care of it with this card. Need to check which card closes next....

[yelped]

Just to get this clear, it's enough if one account closes with a $2 balance? By how much did the credit score go up? Is this a one time thing or I have to do this every month?

[pixi]

Just to get this clear, it's enough if one account closes with a $2 balance?

Yes

By how much did the credit score go up?

It all depends on your credit profile

Is this a one time thing or I have to do this every month?

The more you do it the higher your fico score will be

[yelped]

Yes
It all depends on your credit profile
The more you do it the higher your fico score will be

OK. Great. Thanks for clearing it up for me.

[newdealseeker]

How do you all do it, try to have the $2 activity on the same card every month?

[David Smith]

How do you all do it, try to have the $2 activity on the same card every month?

Pay up everything but $2 before the  statement closes.

[newdealseeker]

Pay up everything but $2 before the  statement closes.

But do you do that every month with the same card?

[newdealseeker]

For the purpose of the $2 trick, what if the amount is more than $2 but less than $2.50?

[yakrot]

For the purpose of the $2 trick, what if the amount is more than $2 but less than $2.50?

$2 dollar trick is the same as the $3 dollar trick, only difference being that 2 is lower than three

[benjie1305]

The point is that it starts as $2 as that is the amount most CBs actually process as not $0. As long as it is a tiny amount of your CL from a given card its fine.

[newdealseeker]

$2 dollar trick is the same as the $3 dollar trick, only difference being that 2 is lower than three

I would assume they'll round it down to $2.
Also, does everyone use the same card for this purpose every month? Because I want to use a different card now and it's not a month yet, so I'll have $4 not $2 for this month.
Wondering what everyone else does.

[Mendelssohn]

The point is that it starts as $2 as that is the amount most CBs actually process as not $0. As long as it is a tiny amount of your CL from a given card its fine.

Correct.

[Mendelssohn]

I would assume they'll round it down to $2.
Also, does everyone use the same card for this purpose every month? Because I want to use a different card now and it's not a month yet, so I'll have $4 not $2 for this month.
Wondering what everyone else does.

I typically use the same card. If you want to change it, 1 extra card with $2 is not going to tank your scores.

Remember, this technique was formulated to ensure the most points possible for utilization in your FICO scores. How much you gain or lose for various aspects depends completely on your profile.