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Good eyes.

Lets sharpen the edge slightly more.

It is true that using a card and paying it off will show an average balance for reporting purposes. Like you pointed out exactly what that balance is at any one point and when the report is sent on to the bureau is not obvious (and not worth trying to tightly manage IMHO).

If you want to demonstrate the ability to manage larger amounts without running a balance you will need to charge larger amounts in a single month (or two) so that the number is larger when the report is sent. I am talking about charges above $10,000 or $20,000 as an example.

Individual lenders do look at the average balance and do care about what you carry over vs. pay off. If you want them to then raise your limit having shown a tendency to carry a balance can make a difference (they do look to see if a customer is profitable to them). Card companies have policies and score cards that are not completely driven by a credit score so you can better optomise if you understand what they care about.

Credit is a tool and there are ways to take care of your tools so that when you need the credit it is the most available.

Side note. With zero interest deals you can carry a large balance for no practical cost.

John
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