12-11-2013 01:43 PM
I have a question i have 2 secured cards one for $200 and one for $300 i just paid my $200 card down to $14 before the statement cut thats about 7% utilization then i will pay off the $14 when it is due my question is do i do the same for the $300 card? or what do i do?
12-11-2013 02:06 PM - edited 12-11-2013 02:14 PM
Ideally, for the best score, its the common reccomendation you let 1 card report at 9% or lower.
Then you just make sure to pay at least the statement amount by the due date. Thats considered a PIF.
So if you have a $14 balance now and add say, $100 in spending before the statement due date, you would want to pay it down again.
But dont pay all all of it. Leave it at %10 or under at statement close so it reports.
This is still considered as PIF and avoiding interest.
This is good for your credit/scoring because FICO will see you as actively using credit month to month responsibly.
As always your YMMV, but this tactic worked very good for me and many others.
This of course is for the optimal score, and when you go to seek new credit you'll want to have your report look this way at that time so your approval odds will be increased.
If not seeking new credit, try to keep overall utilization under 30%, and don't max out your cards (90% or more)
This may not be the optimal score, but you should be in safe green zone.
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