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Established Contributor
CruzImperial
Posts: 869
Registered: ‎07-04-2012
0

0% utilization reported

Hi everyone, before my recent app spree, my util was always in the 7-11% range. After getting some cards and some new limits, my util went down fast. i currently have 35k CL and my util is fluctuating between 4-6% after a nice purchase.

Now, yesterday's payment was extra for many people and in my case that money is enough to pay off my balances to 0.
I don't like debt whatsoever and i have the biggest temptation to click that button and live debt free.

To keep myself with 1% util, i must have a $350 balance.

How would my score be affected by the 0% util hitting my reports?

And

Can i avoid interests even when carrying a balance?
Fico Scores: . Walmart TU 748 . Garden 8/19 2014 .

Cap One Journey 500 | Discover IT 500 | GE Home Design 5.6k | GE HHGREGG 5k | Amex Zync NPSL | Amex BCE 6k | Citi Forward 4.2k | Citi Dividend 3k | GE BrandsMart 1k | GE Lowes 8.5k | Discover Walmart 7.5k | Barclays Apple 2.5k | BoA CR 2.7k | CSP 7.2k | Platinum Prestige 5k | IT Chrome 4k | Slate 2.3k |
Established Contributor
Jlu
Posts: 922
Registered: ‎06-12-2012
0

Re: 0% utilization reported

Yes you can avoid interest since your statement cut date and your due date are two different things and happen on different days. If you can ensure you balance is $0 on the due date and $350 on the statement cut date then you will achieve 1% utilization. You only need to do this if you are seeking more credit for that particular month though. No need to worry about utilization unless you are seeking credit or it is a problem where you are over 80% utility (not your case).

JP Morgan Select $10k | CSP $10k | Citi TY Premier $15k | BofA 3-2-1 $15k | Chase Freedom $10k | Discover IT $10k | Barclaycard $15k | AMEX SPG $5k | AMEX PRG NPSL | NASA Platinum-Advantage $10k | CapOne Quicksilver $3k | Walmart Card $5k | Amazon Card $10k | Chase Auto 1.49% | Joined myFICO 6/12 with a 540 FICO & today I'm over 750!
Valued Contributor
jamesdwi
Posts: 1,970
Registered: ‎09-16-2011
0

Re: 0% utilization reported

the rule is  1-9% on a single card with the rest of the cards reporting 0 for best score.  And it doesn't matter which card has the balance showing you can have it show on a $500 CL card so the maximum be less than $50 for 9% or $5 for 1% showing. 


Cards: Chase Southwest 20k & CSP 10k & Freedom 6.6k & Amtrak 4.6k, FNBO DISC 14.9k Oregon Duck 5k, & AMEX BCP 15k & Hilton Surpass 7.5k & Delta Gold 6k & Zync NPSL, Sally Mae5k Sams Club MC 10k, Paypal Extras MC 6k, CapOne QS 2.5k, QS 750, Amazon 3.9k, Walmart 4.5k, Citi Simplicity 7k, HHonors Gold 1k (moved 5k CL to Simplicity), Discover IT 6.5k and a nice stack of store cards.
Last APP 12/15/2014
Established Contributor
Jlu
Posts: 922
Registered: ‎06-12-2012
0

Re: 0% utilization reported

^This is incorrect information. FICO scoring takes overall utilization into account. When we say 1-9% to maximize scoring we are talking about the overall utilization so on 100k in credit you would need 1k-9k balance on 1 card.

JP Morgan Select $10k | CSP $10k | Citi TY Premier $15k | BofA 3-2-1 $15k | Chase Freedom $10k | Discover IT $10k | Barclaycard $15k | AMEX SPG $5k | AMEX PRG NPSL | NASA Platinum-Advantage $10k | CapOne Quicksilver $3k | Walmart Card $5k | Amazon Card $10k | Chase Auto 1.49% | Joined myFICO 6/12 with a 540 FICO & today I'm over 750!
Mega Contributor
LS2982
Posts: 15,436
Registered: ‎04-09-2011
0

Re: 0% utilization reported

Either way is correct, as long as 1 card out of all cards is carrying the balance and it equates to 1-9% of overall utilization.



Silver Spade Garden Club Member - Last App 12/16/13 - Looking for a clean slate NO INQ's / Diamond Inspired!
Starting Score:
EX (PLUS) 583 EQ FICO 565 TU FICO 590 3/15/2011 / Goal Scores: 720
Current Score: EX FICO (PSECU) 671 (myFICO) N/A / EQ FICO 679 / TU08 FICO 678 / TU VS 706 3/6/2014
Established Contributor
Jlu
Posts: 922
Registered: ‎06-12-2012
0

Re: 0% utilization reported

No, he was implying that 1-9% on a single card limit would generate the same scoring effect as 1-9% overall utilization.
JP Morgan Select $10k | CSP $10k | Citi TY Premier $15k | BofA 3-2-1 $15k | Chase Freedom $10k | Discover IT $10k | Barclaycard $15k | AMEX SPG $5k | AMEX PRG NPSL | NASA Platinum-Advantage $10k | CapOne Quicksilver $3k | Walmart Card $5k | Amazon Card $10k | Chase Auto 1.49% | Joined myFICO 6/12 with a 540 FICO & today I'm over 750!
New Contributor
OwNt
Posts: 62
Registered: ‎10-07-2007
0

Re: 0% utilization reported

FICO seems to be okay as long as there is at least some balance reporting. Score-wise, its never mattered if I let $1 or $5000 report.

~~Credit Cards~~
Alliant Platinum Rewards Visa, AmEx BCP, BofA Power Rewards, Bank of the West Platinum, Barclay Rewards World MC, Chase Freedom/Chase Sapphire Preferred, Citi Thank You Preferred/Citi Dividend Select, Discover IT, FNBOmaha, Paypal MC, US Bank Cash+/US Bank Perks+.

Total: $300,000+ in lines.
Established Contributor
Jlu
Posts: 922
Registered: ‎06-12-2012
0

Re: 0% utilization reported

Yes it seems as long as you are demonstrating some usage they are happy. It's when there is $0 balances across the board they get nervous.
JP Morgan Select $10k | CSP $10k | Citi TY Premier $15k | BofA 3-2-1 $15k | Chase Freedom $10k | Discover IT $10k | Barclaycard $15k | AMEX SPG $5k | AMEX PRG NPSL | NASA Platinum-Advantage $10k | CapOne Quicksilver $3k | Walmart Card $5k | Amazon Card $10k | Chase Auto 1.49% | Joined myFICO 6/12 with a 540 FICO & today I'm over 750!
Senior Contributor
lg8302ch
Posts: 3,131
Registered: ‎11-13-2012
0

Re: 0% utilization reported

..should have red this post first. In the past two months I started testing how the reaction woud be reporting 7% or 0% on my cards. Now I know that 0 balance reporting on all cards gets punished and it is better to report 1-9% on 1 card at least. Just lost 7 points for reporting 0 balance on all my accounts :smileysurprised:

FICO® EQ 795 (as of today) - TU 778 (11/28) * Fako EX 811 (12/02 - CS) * last app 12/16/14 * INQ last 2 yrs TU: 4, EX: 5, EQ: 3


Move the mouse over the cards for detailed view!..................................................................* Seedling Garden Club member *
Senior Contributor
Wolf3
Posts: 3,197
Registered: ‎01-24-2010
0

Re: 0% utilization reported


Jlu wrote:

Yes you can avoid interest since your statement cut date and your due date are two different things and happen on different days. If you can ensure you balance is $0 on the due date and $350 on the statement cut date then you will achieve 1% utilization. You only need to do this if you are seeking more credit for that particular month though. No need to worry about utilization unless you are seeking credit or it is a problem where you are over 80% utility (not your case).


Not quite true.

 

You only need to pay the statement balance by the due date to avoid interest and leave the current months charges unpaid so they can report. .    


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