$2 trick to increase FICO score.

[newdealseeker]

here is one of the many places it says not to use chase http://forums.dansdeals.com/index.php?topic=49416.msg1451523#msg1451523

It does not say Chase doesn't work. Only that "Don't use Chase", without giving any reason...

[yochiek93]

It does not say Chase doesn't work. Only that "Don't use Chase", without giving any reason...

Are you aware of what Chase commonly does if you pay in full your balance after the statement closes?

Is there any reason you can't use a non-Chase card?   

[newdealseeker]

Are you aware of what Chase commonly does if you pay in full your balance after the statement closes?

Is there any reason you can't use a non-Chase card?   

With all due respect, I read the whole thread and still my question a page upthread was NOT answered.
I understand this philosophy completely which is why I started technically paying in full but only AFTER the payment will not bring it down to zero. And I also stated that I have only Amex charge cards, and I saw that this will NOT work with charge cards. And still the answer was: Don't use Chase...
Now you'll probably say I should apply for new cards...

[Mendelssohn]

With all due respect, I read the whole thread and still my question a page upthread was NOT answered.
I understand this philosophy completely which is why I started technically paying in full but only AFTER the payment will not bring it down to zero. And I also stated that I have only Amex charge cards, and I saw that this will NOT work with charge cards. And still the answer was: Don't use Chase...
Now you'll probably say I should apply for new cards...

Yes, you should apply for some new cards.  Having cards with 2 issuers is not diverse and your profile is horribly lopsided. 

You don't use Chase because they commonly update with the CRAs mid-cycle if you pay the balance to $0.

Making new charges every month with a balance also means that you are paying some interest.  No matter how small that number may be, I am opposed to paying any interest.

So again, get more cards with different issuers and don't use Chase.

[newdealseeker]

Yes, you should apply for some new cards.  Having cards with 2 issuers is not diverse and your profile is horribly lopsided. 

You don't use Chase because they commonly update with the CRAs mid-cycle if you pay the balance to $0.

Making new charges every month with a balance also means that you are paying some interest.  No matter how small that number may be, I am opposed to paying any interest.

So again, get more cards with different issuers and don't use Chase.

Ok, to be honest, I also have a BofA card but as far as being worthwhile to use, it's not. So it's basically stored in the back of my drawer. And a Discover card which I use for $1.99 a month so it won't help for the $2 trick.

But I fail to see why you think I'm paying interest. Never ever in the 8 years of my credit card history did I pay a late fee or interest. What makes you think I'm paying interest?

[JTZ]

here is one of the many places it says not to use chase http://forums.dansdeals.com/index.php?topic=49416.msg1451523#msg1451523

I seen that. Chase cards work just fine if you know what you are doing. The trick is used best when you need a little bump when applying for certain types of credit. Do you really think it is going to make a difference on a CC app going from 790 to 795?

[newdealseeker]

I seen that. Chase cards work just fine if you know what you are doing. The trick is used best when you need a little bump when applying for certain types of credit. Do you really think it is going to make a difference on a CC app going from 790 to 795?

The reason I want to do the trick is because I'm currently looking to apply for a mortgage. Is that reason enough?

Yes, you should apply for some new cards.

And that's also the reason why I'm holding off on applying for more cards at this time. I don't want to screw up my credit until the mortgage is approved.

[JTZ]

The reason I want to do the trick is because I'm currently looking to apply for a mortgage. Is that reason enough?

That is probably the best use for the trick.

[Mendelssohn]

I seen that. Chase cards work just fine if you know what you are doing. The trick is used best when you need a little bump when applying for certain types of credit. Do you really think it is going to make a difference on a CC app going from 790 to 795?

Based on what you posted, you DON'T know what you're doing.

If you don't want to do it, don't.  This was not devised for a temporary bump for a few days, but to maintain the highest FICOs possible throughout the month. 

[JTZ]

I have been applying for CC's for a long time. The trick is basically useless for that. It has no effect on if I get approved or not.

[Mendelssohn]

The reason I want to do the trick is because I'm currently looking to apply for a mortgage. Is that reason enough?And that's also the reason why I'm holding off on applying for more cards at this time. I don't want to screw up my credit until the mortgage is approved.

This will help a lot with those scoring models.  Just use your BOA card to buy a $2 Amazon GC each month and set it up on autopay after the statement cuts.

Research trailing interest to answer your other question.

[Mendelssohn]

I have been applying for CC's for a long time. The trick is basically useless for that. It has no effect on if I get approved or not.

Approvals are a lot more than FICO scores.

[JTZ]

Approvals are a lot more than FICO scores.

That is my point. A couple of points boost can make the difference on the interest rate of a loan but little effect on an approval.

I have read this whole thread as you suggested (waste of time as I didn't learn anything) and many are putting way to much into this. If you have a good credit score and all you are doing is churning CC's don't waste your time with this trick. It is the same as being obsessed with B* (when it worked) when it had no effect on being approved.

[Mendelssohn]

That is my point. A couple of points boost can make the difference on the interest rate of a loan but little effect on an approval.

I have read this whole thread as you suggested (waste of time as I didn't learn anything) and many are putting way to much into this. If you have a good credit score and all you are doing is churning CC's don't waste your time with this trick. It is the same as being obsessed with B* (when it worked) when it had no effect on being approved.

I'm glad you think it's a waste of time...for you.

Move along.

[newdealseeker]

Based on what you posted, you DON'T know what you're doing.

If you don't want to do it, don't.  This was not devised for a temporary bump for a few days, but to maintain the highest FICOs possible throughout the month.

Which part of what he posted? I'm not doing it temporarily, I've been doing it for months already and plan to keep it that way. When I started looking into getting a mortgage, I started doing the trick, and stopped applying for new credit. Anything wrong with this approach?

[JTZ]

Move along.

Excuse me?

[JTZ]

Which part of what he posted?

Everything I posted was correct. If you are going for a mortgage the trick is a good idea.

[newdealseeker]

I'm glad you think it's a waste of time...for you.

Move along.

+1
I don't think it was a waste of time, not at all.
It's just that I was frustrated that I still can't see why it wouldn't work the way I'm doing it now. As far as the interest issue, I always pay the FULL amount of the PREVIOUS statement balance. So the amount above $0 are from the NEW charges that are not subject to interest until the next statement closing date. I hope I was clear enough.

[JTZ]

When you are using Chase cards you have to be careful because most of the time (not all the time) when paying off mid-cycle it will report to the CRA's. This stops the trick as you no longer have $2 reporting.

[newdealseeker]

This will help a lot with those scoring models.  Just use your BOA card to buy a $2 Amazon GC each month and set it up on autopay after the statement cuts.

Research trailing interest to answer your other question.

I wish it was a Better Balance Card. In that case I would have used it for Amazon GC a long time ago...
What do you mean by research trailing interest?