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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


Author Topic: $2 trick to increase FICO score.  (Read 65295 times)

Offline Mendelssohn

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Re: $2 trick to increase FICO score.
« Reply #510 on: April 22, 2016, 12:18:17 PM »
Is there any point in me paying off most of the balance on amex charge cards before the statement closes? Is it bad to have a $2,000 statement close?

It depends on the scoring model whether or not it impacts your score.

To do the $2 trick, it should also report as $0.

Offline Yitzshpitz

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Re: $2 trick to increase FICO score.
« Reply #511 on: May 26, 2016, 06:08:45 PM »
For this trick, am I supposed to leave 2 dollars unpaid on total balance or statement balance?

Offline Mendelssohn

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Re: $2 trick to increase FICO score.
« Reply #512 on: May 26, 2016, 06:32:54 PM »
For this trick, am I supposed to leave 2 dollars unpaid on total balance or statement balance?

Statement balance.

Offline ben89

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Re: $2 trick to increase FICO score.
« Reply #513 on: July 28, 2016, 02:14:49 PM »
if one statement closes on 2nd of the month and the other on the 17th does it matter which card i leave a balance of $2 on?

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Re: $2 trick to increase FICO score.
« Reply #514 on: July 28, 2016, 05:55:04 PM »
if one statement closes on 2nd of the month and the other on the 17th does it matter which card i leave a balance of $2 on?
Fwiu,  if you will do this with a set up like that is that you should do it on the last statement closing.  Make sure that all other statements close at $0 (you can spend on the next cycle) & the card that closes last leave $2 to close statement on .
It is much easier to do this when you organize your statements from all carss to close as close to same date as possible .

Offline ben89

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Re: $2 trick to increase FICO score.
« Reply #515 on: July 28, 2016, 06:48:16 PM »
Fwiu,  if you will do this with a set up like that is that you should do it on the last statement closing.  Make sure that all other statements close at $0 (you can spend on the next cycle) & the card that closes last leave $2 to close statement on .
It is much easier to do this when you organize your statements from all carss to close as close to same date as possible .
and when the last one closes the other cards should be $0?

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Re: $2 trick to increase FICO score.
« Reply #516 on: July 28, 2016, 06:59:23 PM »
and when the last one closes the other cards should be $0?
No , they should've been at zero at their own closing date. Now that it's in new cycle it can have whatever on it. Preferably , this whole trick should be done after you set up all your card's statements cycles to close at same time

Offline David Smith

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Re: $2 trick to increase FICO score.
« Reply #517 on: July 28, 2016, 07:06:12 PM »
To do the $2 trick, it should also report as $0.

Why is that? Isn't utilization (aside from models that count charge cards to a degree) still at the lowest possible? Are charge card balances not completely irrelevant, or does the $2 need no activity reporting aside from just the utilization aspect?
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

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Re: $2 trick to increase FICO score.
« Reply #518 on: December 02, 2016, 12:09:59 AM »
The Wiki says trick doesnt work with Chase, but the link to CreditBoards doesn't say that.. Which is accurate? And can you pls explain the reason the trick doesnt work with Chase - I don't understand whats written in the WIKI. TIA:)
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Offline cholent

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Re: $2 trick to increase FICO score.
« Reply #519 on: December 02, 2016, 12:15:53 AM »
The Wiki says trick doesnt work with Chase, but the link to CreditBoards doesn't say that.. Which is accurate? And can you pls explain the reason the trick doesnt work with Chase - I don't understand whats written in the WIKI. TIA:)

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.
Don't ask stupid questions and you won't get stupid answers

Offline JTZ

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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?
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Offline Wizard

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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
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Offline cholent

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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

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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

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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.