Topic Wiki

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


Author Topic: $2 trick to increase FICO score.  (Read 113286 times)

Offline JTZ

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Apr 2016
  • Posts: 1884
  • Total likes: 230
  • DansDeals.com Hat Tips 1
    • View Profile
Re: $2 trick to increase FICO score.
« Reply #520 on: December 02, 2016, 12:35:27 AM »
Most credit cards update the credit bureau monthly, at closing. So for the rest of the month your credit report will reflect your closing balance, ideally $2 on one card. Chase, however, updates as soon as you pay. Therefore as soon as you pay your $2 balance disappears and it appears that you have $0 utilization across all credit cards. To avoid this, leave a $2 balance on a non Chase card and pay off all other person cards before the statement closes.
Does Chase update right away or only when you PIF?
"LESS IS MORE" It is the cumulative effect that kills deals!!! How many times do I have to say this?  >:(

Offline Wizard

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Dec 2015
  • Posts: 1505
  • Total likes: 12
  • DansDeals.com Hat Tips 0
  • Gender: Male
    • View Profile
  • Location: New York
Re: $2 trick to increase FICO score.
« Reply #521 on: December 02, 2016, 02:18:42 AM »
Most credit cards update the credit bureau monthly, at closing. So for the rest of the month your credit report will reflect your closing balance, ideally $2 on one card. Chase, however, updates as soon as you pay. Therefore as soon as you pay your $2 balance disappears and it appears that you have $0 utilization across all credit cards. To avoid this, leave a $2 balance on a non Chase card and pay off all other person cards before the statement closes.
Thank you very much
If you are trying to get my attention/assistance and I'm not responding, please feel free to PM me. :)

Offline cholent

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Aug 2014
  • Posts: 2647
  • Total likes: 518
  • DansDeals.com Hat Tips 0
    • View Profile
Re: $2 trick to increase FICO score.
« Reply #522 on: December 02, 2016, 02:42:56 AM »
Don't ask stupid questions and you won't get stupid answers

Offline Wizard

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Dec 2015
  • Posts: 1505
  • Total likes: 12
  • DansDeals.com Hat Tips 0
  • Gender: Male
    • View Profile
  • Location: New York
Re: $2 trick to increase FICO score.
« Reply #523 on: December 02, 2016, 02:59:10 AM »
If you are trying to get my attention/assistance and I'm not responding, please feel free to PM me. :)

Offline PillanSmye

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Aug 2015
  • Posts: 1028
  • Total likes: 68
  • DansDeals.com Hat Tips 1
    • View Profile
Re: $2 trick to increase FICO score.
« Reply #524 on: December 03, 2016, 10:47:54 AM »
Does Chase update right away or only when you PIF?
Chase does mid-cycle updates when you PIF your entire balance.  This includes current charges,  not just your statement balance.

Offline PillanSmye

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Aug 2015
  • Posts: 1028
  • Total likes: 68
  • DansDeals.com Hat Tips 1
    • View Profile
Re: $2 trick to increase FICO score.
« Reply #525 on: December 03, 2016, 10:50:15 AM »

A thank you isn't good enough? ]Trolling for like votes?  LOL. 

Offline Wizard

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Dec 2015
  • Posts: 1505
  • Total likes: 12
  • DansDeals.com Hat Tips 0
  • Gender: Male
    • View Profile
  • Location: New York
Re: $2 trick to increase FICO score.
« Reply #526 on: December 04, 2016, 01:34:02 AM »
Most credit cards update the credit bureau monthly, at closing. So for the rest of the month your credit report will reflect your closing balance, ideally $2 on one card. Chase, however, updates as soon as you pay. Therefore as soon as you pay your $2 balance disappears and it appears that you have $0 utilization across all credit cards. To avoid this, leave a $2 balance on a non Chase card and pay off all other person cards before the statement closes.
I've been trying to understand this but am having some blockage... Should I be paying my Chase cards in full before the statement closes or it doesn't matter because they only report when I pay? If it does report on statement closing, why shouldn't I let stmnt close with $2 and then by the time I pay those $2 that the statement shows due, there will already be a larger balance and it won't be reported as paid in full and only reported next statement closing which will also be $2? Any clarification would be appreciated (and, as I've come to learn, earn a like!)...
If you are trying to get my attention/assistance and I'm not responding, please feel free to PM me. :)

Offline David Smith

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Jun 2015
  • Posts: 8075
  • Total likes: 212
  • DansDeals.com Hat Tips 13
    • View Profile
Re: $2 trick to increase FICO score.
« Reply #527 on: December 04, 2016, 01:48:22 AM »
I've been trying to understand this but am having some blockage... Should I be paying my Chase cards in full before the statement closes or it doesn't matter because they only report when I pay? If it does report on statement closing, why shouldn't I let stmnt close with $2 and then by the time I pay those $2 that the statement shows due, there will already be a larger balance and it won't be reported as paid in full and only reported next statement closing which will also be $2? Any clarification would be appreciated (and, as I've come to learn, earn a like!)...
Yes, you should pay before closing, as they report the balance and don't update until next statement or you pay in full.

It's been asked by many and the notion has been dismissed as heresy, although it works perfectly well.
Who do you think you are fooling? You think you are going to pull a quick one on your Creator? Good luck with that.
JTZ

Offline Wizard

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Dec 2015
  • Posts: 1505
  • Total likes: 12
  • DansDeals.com Hat Tips 0
  • Gender: Male
    • View Profile
  • Location: New York
Re: $2 trick to increase FICO score.
« Reply #528 on: December 04, 2016, 02:11:36 AM »
Yes, you should pay before closing, as they report the balance and don't update until next statement or you pay in full.

It's been asked by many and the notion has been dismissed as heresy, although it works perfectly well.
Thank you. What do you mean in the last sentence? The 2 dollar trick does work?
If you are trying to get my attention/assistance and I'm not responding, please feel free to PM me. :)

Offline Wizard

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Dec 2015
  • Posts: 1505
  • Total likes: 12
  • DansDeals.com Hat Tips 0
  • Gender: Male
    • View Profile
  • Location: New York
Re: $2 trick to increase FICO score.
« Reply #529 on: December 04, 2016, 11:51:06 AM »
Thank you. What do you mean in the last sentence? The 2 dollar trick does work?
Bump please
If you are trying to get my attention/assistance and I'm not responding, please feel free to PM me. :)

Offline PillanSmye

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Aug 2015
  • Posts: 1028
  • Total likes: 68
  • DansDeals.com Hat Tips 1
    • View Profile
Re: $2 trick to increase FICO score.
« Reply #530 on: December 04, 2016, 12:17:45 PM »
David is saying that your idea will work.   When you pay the $2 statement balance to Chase,  it will not report as $0 mid-cycle if you have already put new charges on the card because you will not be PIF'ing.

The reason it is suggested not to use Chase is to make it easier for people to understand and implement,  not because it isn't possible to make it work.  Most people have issuers other than just Chase,  so its easier to explain on the internet by advising that Chase is avoided rather than adding a bunch of caveats.

Plus many of us who do the $2 trick pay the $2 the day it posts, not letting the balance  marinate for the entire month.
« Last Edit: December 04, 2016, 12:23:53 PM by PillanSmye »

Offline hide4

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Oct 2015
  • Posts: 1437
  • Total likes: 29
  • DansDeals.com Hat Tips 2
    • View Profile
  • Location: NY-Israel
Re: $2 trick to increase FICO score.
« Reply #531 on: December 04, 2016, 03:02:22 PM »
David is saying that your idea will work.   When you pay the $2 statement balance to Chase,  it will not report as $0 mid-cycle if you have already put new charges on the card because you will not be PIF'ing.

The reason it is suggested not to use Chase is to make it easier for people to understand and implement,  not because it isn't possible to make it work.  Most people have issuers other than just Chase,  so its easier to explain on the internet by advising that Chase is avoided rather than adding a bunch of caveats.

Plus many of us who do the $2 trick pay the $2 the day it posts, not letting the balance  marinate for the entire month.
Is there really an issue with having a $2 balance for a few days?

Offline Wizard

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Dec 2015
  • Posts: 1505
  • Total likes: 12
  • DansDeals.com Hat Tips 0
  • Gender: Male
    • View Profile
  • Location: New York
Re: $2 trick to increase FICO score.
« Reply #532 on: December 04, 2016, 03:03:10 PM »
David is saying that your idea will work.   When you pay the $2 statement balance to Chase,  it will not report as $0 mid-cycle if you have already put new charges on the card because you will not be PIF'ing.

The reason it is suggested not to use Chase is to make it easier for people to understand and implement,  not because it isn't possible to make it work.  Most people have issuers other than just Chase,  so its easier to explain on the internet by advising that Chase is avoided rather than adding a bunch of caveats.

Plus many of us who do the $2 trick pay the $2 the day it posts, not letting the balance  marinate for the entire month.
Thank you very much! Since when do DDFers try to make things simple?  :P
I'm using Chase because only other card I use is Amex Biz which doesn't report...

What do you mean in your last paragraph? You pay the $2 the day the statement closes or the day it posts? And Why?

Like completed :)
If you are trying to get my attention/assistance and I'm not responding, please feel free to PM me. :)

Offline PillanSmye

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Aug 2015
  • Posts: 1028
  • Total likes: 68
  • DansDeals.com Hat Tips 1
    • View Profile
Re: $2 trick to increase FICO score.
« Reply #533 on: December 04, 2016, 09:02:33 PM »
Is there really an issue with having a $2 balance for a few days?
Issue? No. I just like to keep my financial affairs tight.  I don't need the float,  so I pay everything before statements cut or as soon as I receive statements. 

I do the same with my business CC's.  My business CC's are like checks to me.  I just use them for points/miles/cash back on things I would otherwise use checks/ACH for.

Offline etech0

  • Dansdeals Lifetime 10K Presidential Platinum Elite
  • *******
  • Join Date: Dec 2013
  • Posts: 12861
  • Total likes: 3316
  • DansDeals.com Hat Tips 1
    • View Profile
  • Location: not lakewood
  • Programs: DDF
Re: $2 trick to increase FICO score.
« Reply #534 on: December 04, 2016, 09:11:36 PM »
Issue? No. I just like to keep my financial affairs tight.  I don't need the float,  so I pay everything before statements cut or as soon as I receive statements. 

I do the same with my business CC's.  My business CC's are like checks to me.  I just use them for points/miles/cash back on things I would otherwise use checks/ACH for.
Is it worth the extra effort just not to float $2? Why not just set all cards on autopay, so that the $2 will get paid before it's due and you don't have to worry about it?
Workflowy. You won't know what you're missing until you try it.

Offline PillanSmye

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Aug 2015
  • Posts: 1028
  • Total likes: 68
  • DansDeals.com Hat Tips 1
    • View Profile
Re: $2 trick to increase FICO score.
« Reply #535 on: December 04, 2016, 09:28:27 PM »
Is it worth the extra effort just not to float $2? Why not just set all cards on autopay, so that the $2 will get paid before it's due and you don't have to worry about it?

Is it worth it to me or to you?   Probably takes me 30 seconds to push a billpay from BofA to whatever issuer.

Offline etech0

  • Dansdeals Lifetime 10K Presidential Platinum Elite
  • *******
  • Join Date: Dec 2013
  • Posts: 12861
  • Total likes: 3316
  • DansDeals.com Hat Tips 1
    • View Profile
  • Location: not lakewood
  • Programs: DDF
Re: $2 trick to increase FICO score.
« Reply #536 on: December 04, 2016, 09:56:57 PM »
Is it worth it to me or to you?   Probably takes me 30 seconds to push a billpay from BofA to whatever issuer.
For me it's not the time it takes, it's remembering to do it. I guess that's a personal decision, though.
Workflowy. You won't know what you're missing until you try it.

Offline PillanSmye

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Aug 2015
  • Posts: 1028
  • Total likes: 68
  • DansDeals.com Hat Tips 1
    • View Profile
Re: $2 trick to increase FICO score.
« Reply #537 on: December 04, 2016, 10:22:48 PM »
Thank you very much! Since when do DDFers try to make things simple?  :P
I'm using Chase because only other card I use is Amex Biz which doesn't report...

What do you mean in your last paragraph? You pay the $2 the day the statement closes or the day it posts? And Why?

Like completed :)

If I'm doing the $2 trick,  the day I get a statement for the $2 I pay it.

I like to never have any debt...it's just how I am.  It's why i like to MS AMEX hard,  so I can pay it repeatedly with no issues through the month. 

Offline PillanSmye

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Aug 2015
  • Posts: 1028
  • Total likes: 68
  • DansDeals.com Hat Tips 1
    • View Profile
Re: $2 trick to increase FICO score.
« Reply #538 on: December 04, 2016, 10:26:10 PM »
For me it's not the time it takes, it's remembering to do it. I guess that's a personal decision, though.
I have 20+ CC's.  I check each one at least once a week for fraudulent charges,  payments etc. BofA billpay open on one tab,  whatever CC on the next.

Offline JTZ

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Apr 2016
  • Posts: 1884
  • Total likes: 230
  • DansDeals.com Hat Tips 1
    • View Profile
Re: $2 trick to increase FICO score.
« Reply #539 on: December 04, 2016, 11:12:31 PM »
Lets remember what the $2 trick is for. Most of the time you will never need it.
"LESS IS MORE" It is the cumulative effect that kills deals!!! How many times do I have to say this?  >:(