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0% utilization reported

Established Contributor

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 |
10 REPLIES
Established Contributor

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).

AMEX SPG $30K | Citi TY Premier $20k | PenFed PlatRewards $25k | Barclay Arrival+ 40k | Chase Freedom $20k | BofA AMEX $15k | Discover IT $20k | | NASA Platinum-Advantage $20k | CapOne Quicksilver $15k | Amazon Card $10k |

My Journey from Sub-600s:
Valued Contributor

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 & CSR 10k & CSP 10k & Freedom 6.6k & Amtrak/Freedom 4.6k, FNBO DISC 25.1k Oregon Duck 5k, & AMEX BCP 15k & Hilton Surpass 7.5k & Delta Gold 6k & Zync NPSL, Fidelity AMEX 17k Commerce5.9k & Cash Forward 7.5k & Sams Club MC 10k, Paypal Extras MC 7.5k, CapOne Venture 15k, QS 2.5k, QS 750, Amazon 5.9k, Walmart 10k, Citi Simplicity 9k, Discover IT 16k and a nice stack of store cards.
Last APP/HP 5/15/2017 Marcus Loan. 30k
Established Contributor

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.

AMEX SPG $30K | Citi TY Premier $20k | PenFed PlatRewards $25k | Barclay Arrival+ 40k | Chase Freedom $20k | BofA AMEX $15k | Discover IT $20k | | NASA Platinum-Advantage $20k | CapOne Quicksilver $15k | Amazon Card $10k |

My Journey from Sub-600s:
Mega Contributor

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.



EQ FICO 548 3/3/16
Established Contributor

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.
AMEX SPG $30K | Citi TY Premier $20k | PenFed PlatRewards $25k | Barclay Arrival+ 40k | Chase Freedom $20k | BofA AMEX $15k | Discover IT $20k | | NASA Platinum-Advantage $20k | CapOne Quicksilver $15k | Amazon Card $10k |

My Journey from Sub-600s:
New Contributor

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

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.
AMEX SPG $30K | Citi TY Premier $20k | PenFed PlatRewards $25k | Barclay Arrival+ 40k | Chase Freedom $20k | BofA AMEX $15k | Discover IT $20k | | NASA Platinum-Advantage $20k | CapOne Quicksilver $15k | Amazon Card $10k |

My Journey from Sub-600s:
Senior Contributor

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 Smiley Surprised

Move the mouse over the cards for detailed view!
....Last HP 01 NOV 2016...............
Senior Contributor

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. .