No. of Recommendations: 1 I understand better where you are coming from...

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).

I agree completely. You can manage your accounts and time the really big purchases to avoid temporary dings...but if you have strong credit, these temporary dings are insignificant anyway. 720+ typically gets you the best rates on cards and if you are at 750+, you really do not need to manage your credit cards any more than you already are and you are safe to get the good loans.

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.

True. And this can be important to get the Platinum-level cards at some companies...which often come with added benefits that make them great cards. I have the Platinum Delta AMEX because of the extra benefits it provides me...

Individual lenders do look at the average balance and do care about what you carry over vs. pay off.

No question...but they cannot get this information from your credit report. They can only get it from the account(s) you have with 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.

Again I agree...but they can only use: (1) the information found in your credit report; and (2) additional information they track regarding the account(s) you have with them. So if you are purely looking to see how a *new* lender will view you, the only thing that matters is the snapshot on your credit report and that does not include anything about balances carried over.

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.

I 100% agree.

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

I agree here too...though I choose not to use them very often.

Now that I understand where you are coming from better, I think we agree almost entirely on credit. It is a wonderful tool for those able and willing to use it properly. The proper use varies from person to person based on their temperament and the time they are willing to spend maximixing their benefits.

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