Credit Card Usage

[probation1984]

Was wondering about usage of m credit cards. I have two cards at the moment, both fairly new and with limits of 500.00.

I have Barclays NFL rewards Visa card w/500 limit, and also Credit One Bank Visa card w/500 limit. My guy working on my Mortgage Loan told me no to go above 50% utilization on my cards because it would then start to hurt my credit score. What is the actual % to stay between? I actually thought I was only supposed to use around 10-15% of the credit available? Also should I use both cards or could I just use the Barclays Card and shelf the credit one card since the interest accrues the moment it posts? Thanks in advance for any help

[titanofold]

To optimize your score: Let all but one card report 0%. Let one card report 1% - 9% of its CL.

The most important thing, though, is to be on time with your payments.

[probation1984]

Ok thanks. How often should I use the card that is reporting 0% so I doesn't get deactivated? 

[FastForward]

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@probation1984 wrote:

Ok thanks. How often should I use the card that is reporting 0% so I doesn't get deactivated? 

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You can actually use it every month - just as long as you have any current balances paid off before the statement cut-off date.  For instance on the cards that I want to report as a zero balance on my CR, I have my Bill Pay reminders set up to remind me to pay before their statement dates.  I've also made it a point to stop using the card around 3-5 days prior to the end of the statement cycle as well.  Then, before paying the account, I'll check their "real time" balances online (including any pending charges that haven't posted yet), then push that payment amount through on Bill Pay.  Also, if I know of other charges that may be posting soon (i.e. automatic ACH payments, etc.), I'll add that in as well, just to be safe.

Otherwise, if you would rather not use your "zerio-balance reporting" card every month, I would suggest to use it at least once a quarter for a nominal charge, then just push a pament through online to pay it off asap.  Another suggestion may be just to set up a small recurring monthly bill on it (like Netflix, for example).  Then again, just pay it off once a month at least 2 days before the statement cut off date.

By the way, with my hubby's Credit One account, we've learned to make sure to pay any charges we put on it almost immediately (same day).  Because Credit One does not have a grace period, we've been caught off guard with last-minute interest charges ($4-$5) that was posted on the actual statement cut off date (when it was too late to push another payment through to zero out the balance in order for it report as zero).

Hope this helps.

[probation1984]

Thanks your for the info. I pay both of my cards off before the due date. shouLd I let one card have a small balance past the due date? Or is it good to pay both off when they post?

[asphaltcowboy]

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@probation1984 wrote:

Thanks your for the info. I pay both of my cards off before the due date. shouLd I let one card have a small balance past the due date? Or is it good to pay both off when they post?

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Pay one off before due date, let the other report at <9%. Pay it off, rinse & repeat

[probation1984]

Excellent. Thankhs for the advice! 

[FinStar]

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@asphaltcowboy wrote:

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@probation1984 wrote:

Thanks your for the info. I pay both of my cards off before the due date. shouLd I let one card have a small balance past the due date? Or is it good to pay both off when they post?

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Pay one off before due date, let the other report at <9%. Pay it off, rinse & repeat

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+1

Also consider rotation for this optimal strategy.

[Open123]

It would only be an issue when you apply for the mortgage.  Until then, if you can tolerate the numberical swings, it's irrelevant the effect utilization has on your score, since the moment you lower it, your score will adjust accordingly.

Of course, if you prefer not to see the wild score swings, just charge, pay, and make sure less than 10% utility reports.

[wHiTeSoL]

also make sure you are not confusing "due date" and "statement date". Statement date = The last day of your statement, this is the amount the will be reported to the CRAs. If you dont want a balance to show pay it so it is $0 by this date every month Due Date = Normally 25 days after your statement date, with a minimum payment required to not be "late"