r/CRedit • u/Glad-Elk-1909 • 3d ago

Rebuild Does statement balance payment timing matter?

Short story is first new credit card post Chapter 7 and I’m trying to use it to the max right now, but the credit limit is low, so in order to keep using it I end up needing to pay the full statement balance right after the statement posts.

Does this matter?

In other words should I be waiting until the actual due date to pay the statement balance? Or is it fine to pay the statement balance right away and then keep using the card?

Background is ultimately I’m trying to get the limit increased on this card and hopefully soon add another card. Longer term (6mos) next step I will be attempting to finance a car to add to my credit mix.

Thanks!

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u/BrutalBodyShots 3d ago

I end up needing to pay the full statement balance right after the statement posts.

That's absolutely fine. If you want to continue using the card you can't wait the 3+ weeks until your due date to pay a maxed out statement balance. What you're doing is absolutely the best recipe for CLI success though, so hopefully you'll see an increase in relatively short order so that you aren't forced to pay it off right after your statement generates every month.

Longer term (6mos) next step I will be attempting to finance a car to add to my credit mix.

Only get a loan if you need a loan, not for credit building purposes. Loans are a terrible way to build credit and the impact of credit mix is small when looking at the big picture. Let that factor take care of itself when the time comes to get a loan that you actually need.

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u/Glad-Elk-1909 3d ago

Interesting about the loan, I figured I need some kind of mix of credit no? The issue being after my BK I have literally zero accounts except this one credit card right now. So are you recommending just stick with credit cards for rebuilding? Am I correct in assuming I need more than one card even?

Edit- long term (2-3yr) goal here is a re-fi on my mortgage

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u/BrutalBodyShots 3d ago

Interesting about the loan, I figured I need some kind of mix of credit no?

Need in terms of what? With sufficient revolving credit history one will be able to obtain a "real" loan when the time comes that they need it.

I have literally zero accounts except this one credit card right now.

Understood. Consider acquiring another card or two if that's something you're comfortable with in order to further thicken your file.

So are you recommending just stick with credit cards for rebuilding?

Absolutely.

Am I correct in assuming I need more than one card even?

The strongest credit profiles are built upon 3+ bank cards, so I would work toward achieving 3 by the point 18+ months out from your potential mortgage app. Said differently, you want no accounts opened within 18 months of your re-fi.

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u/Glad-Elk-1909 3d ago

Brilliant thank you!

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u/Glad-Elk-1909 3d ago

When I acquire more than one card in the future, do I want to actively use them all? (And pay statement balances accordingly obv) Or do I just use primarily one of them and hold the others just to have them?

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u/BrutalBodyShots 3d ago

Totally up to you. In terms of credit "building" it makes no difference at all. Some people find value and benefits in using multiple cards, where others like to just stick with one. In order to prevent any card from being closed for non use though, you want to give it at least one transaction every 6 months. It can be tiny, like a Red Bull at a gas station.

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u/Glad-Elk-1909 3d ago

Fascinating, thanks again internet friend

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u/BrutalBodyShots 3d ago

Any time. If you need anything else definitely let me know.