@xgac12x wrote:
Right now I have two credit cards in my wallet. Capital One Secured, $1500 limit (I use for my everyday purchases, I dont use my debit), and Discover It ($650 limit, gas), now the Cap one doesnt have any rewards, which kind of sucks.. Should I start using my Discover It card instead for my everyday purchases because it has rewards of 1% on everything and 5% on gas?
I just dont want to use my discover because it has a much lower limit, which relates to a higher util..
Thanks
Definitely use your Discover IT more - cash back is cash back!
The trick to battling the high utility is to make sure you may multiple payments in a month, and/or make sure the balance is paid down before the statement cut date.
Say for example your due date is on the 22nd, but your statement cuts on the 25th. You make sure whatever balance from the last statement period is needed to be paid by the 22nd is paid. However, the purchases you made in the current statement period are going to be reported to the CRs on the 25th.
So say you made $400 dollars of purchases in one statement...with a $650 limit, you should pay the balance down to at $58.50 or less by the statement close date, giving you <9% utility and it will look good on your credit reports. Voila! That 60%+ utilization is avoided! And the $58.50 or less becomes the new statement balance, ready to be paid by your next due date.
Best of luck!
