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Established Member
Posts: 13
Registered: ‎05-04-2007
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CC Utilization

is it best to pay off a cc every month to $0 or to keep a balance on it??  if the card is a $10,000 and $1,000 max is used monthly and PIF, how does that affect your credit score?  i'm asking for a friend...my credit cards are not that high!!  i'm not completely sure how the utilization thing works.  thanks for any info!! Smiley Happy
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Posts: 16,375
Registered: ‎03-12-2007
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Re: CC Utilization



angelmcd wrote:
is it best to pay off a cc every month to $0 or to keep a balance on it??  if the card is a $10,000 and $1,000 max is used monthly and PIF, how does that affect your credit score?  i'm asking for a friend...my credit cards are not that high!!  i'm not completely sure how the utilization thing works.  thanks for any info!! Smiley Happy


For max FICO points it's best to keep util at 1-9% of your CLs (credit limits) on all CCs and other revolving accounts.
Credit Profile -
FICO 08 Scores (03-26-2015): EQ 814, EX 817, TU 822
All three scores were 850. Lost points for not having an open installment TL. So, BE WARNED!!!!!
Credit History: 26 years ~ AAoA: 13 years ~ Util: 1% ~ Inqs: EX 1, EQ 1

Credit Cards: Amex BCP ~ Amex Clear ~ Amex Platinum ~ Barclay Ring Mastercard ~ Chase Freedom Visa ~ CITI Dividend Platinum World Mastercard ~ FIA Fidelity Investment Platinum Visa ~ First Hawaiian Bank Gold Visa
Senior Contributor
Posts: 3,071
Registered: ‎05-17-2007
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Re: CC Utilization

[ Edited ]

angelmcd wrote:
is it best to pay off a cc every month to $0 or to keep a balance on it?? if the card is a $10,000 and $1,000 max is used monthly and PIF, how does that affect your credit score? i'm asking for a friend...my credit cards are not that high!! i'm not completely sure how the utilization thing works. thanks for any info!! Smiley Happy

Fico gives you a few more points with a tiny balance. Just using the card (regardless of amount) each month will force the CC company to update your reports. That is where you gain most points. ONLY when you need your score higher, best to pay off, but leave a small tiny balance on 1-4 cards. If you are looking long term, just use each card so they report. Utl works against your score. The more you charge the lower you scores go. UTL is based on a current report and changes the "moment" the report is updated. So if you charge 50% this month and pay it off next month, your score will be different from month to month. Long term you gain points from activity.

Message Edited by ilovepizza on 07-25-2007 01:37 PM
If we never set higher goals we would never get as far.
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