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CC Utilization question

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Anonymous
Not applicable

CC Utilization question

I've got a Capital One Secured (CL 201) and Discover Secured (CL 200) on the way to me. These will be my only two cards. I want to do right by these companies so that I could potentiall receieve graduation for both of these cards. I have heard that it is ideal to keep a small balance on one card and let others report 0 balances.

 

How should I go about that? Should I use both cards and then pif on one of them before statement cuts, allowing the other to report small balance? I want to build my credit as much as possible in the process. Scores are currently pretty low..

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NRB525
Super Contributor

Re: CC Utilization question

Congrats on the new cards. 

 

I would use them regulatly, for everyday costs you already have the cash to pay, and only be certain to not go over the credit limit, and pay the statement balance by the statement due date following. 

 

At $200 per card, I would not worry about utilization percentage at all. Not at all. 

 

The way way to build the trust is to pay on time. After more time has passed, you might consider getting one card to zero, the other card a small balance on the statement, but that can be a sometimes exercise, does not have to be every statement.

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
April 2022 EQ=811 TU=807 EX=805 - TU VS 3.0 765
Message 2 of 5
Anonymous
Not applicable

Re: CC Utilization question

I agree with NRB525 above.

 

At this stage of the game, there's no need to be micromanaging a couple of $200 limit cards.  If you're making regular on-time monthly payments, that's what matters.  It's recommended that you PIF every month as that's the best "look" you can give those creditors and will yield you the best/fastest chances of graduation.  I'd try not to let any balances report at all to be honest, as it doesn't take a very large purchase to max out or near max out a $200 credit limit if a balance does end up reporting.  6+ months of PIF behavior on these cards will yield you favorable results.

 

Message 3 of 5
Anonymous
Not applicable

Re: CC Utilization question


@Anonymous wrote:

I agree with NRB525 above.

 

At this stage of the game, there's no need to be micromanaging a couple of $200 limit cards.  If you're making regular on-time monthly payments, that's what matters.  It's recommended that you PIF every month as that's the best "look" you can give those creditors and will yield you the best/fastest chances of graduation.  I'd try not to let any balances report at all to be honest, as it doesn't take a very large purchase to max out or near max out a $200 credit limit if a balance does end up reporting.  6+ months of PIF behavior on these cards will yield you favorable results.

 


Does this mean I should figure out when my statements cut and pay balances down to $0 before that date?

Message 4 of 5
SouthJamaica
Mega Contributor

Re: CC Utilization question


@Anonymous wrote:

I've got a Capital One Secured (CL 201) and Discover Secured (CL 200) on the way to me. These will be my only two cards. I want to do right by these companies so that I could potentiall receieve graduation for both of these cards. I have heard that it is ideal to keep a small balance on one card and let others report 0 balances.

 

How should I go about that? Should I use both cards and then pif on one of them before statement cuts, allowing the other to report small balance? I want to build my credit as much as possible in the process. Scores are currently pretty low..


1. Don't "keep" a balance on either.

2. Use them and pay them as often as you like BEFORE the statement date.

3. Let one report a small balance of $20 or less on the statement, and have the other one report a zero balance.

 

 


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

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