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Credit Utilization

Established Member

Credit Utilization

I am trying to get my credit utilization down. It is around 50% right now, but every month i pay my balances down to $0. My question is if i pay off  my credit cards before my cycle ends and leave 5% utilization left on each and pay on the due date, will that work on keeping my utilization down?

Message 1 of 6
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Valued Member

Re: Credit Utilization


falcon7xx wrote:

I am trying to get my credit utilization down. It is around 50% right now, but every month i pay my balances down to $0. My question is if i pay off  my credit cards before my cycle ends and leave 5% utilization left on each and pay on the due date, will that work on keeping my utilization down?


In a perfect world... pay all the cards to a $0 balance and keep them at $0 until after the statement cuts.  Do this with all but one card.  That one card you should leave a small balance due at the time the statement cuts.  The statement balance is the amount that is reported to the credit reports.  It is often stated here that the sweet spot varies per individual, but it may be somewhere around 9% balance (on one card) and the rest at $0.

Amex BCP 02/12 $1200/$14700, Citi Forward 2/12 $4800/$7000, Chase Freedom 2/12 $2200/$7000, GECRB/QVC 03/11 $0/$2700, WFCB/HSN 03/11 $0/$2000, Cap 1 NHCR 04/10 $0/$1500, Cap 1/Kohls 11/10 $0/$1000, Citi Simplicity 08/11 $0/$1000, WFNNB/KingSize 11/10 $116/$900, Citi/Sunoco 04/10 $0/$800, Citi/Home Depot 10/11 $0/$1500, SunTrust Auto Loan 11/10 $39,376/$47,914 RECENTLY CLOSED: HSBC/Orchard 04/09 $0/$700, HSBC/BBRZMC 04/11 $0/$500...

**HAPPILY GOING INTO THE GARDEN NOW FOR YEARS!** EX FICO 773 02/27 Amex Pull/ TU myFICO 798 02/29 / EQ myFico 778 02/29
Message 2 of 6
Established Member

Re: Credit Utilization

Should I switch the cards up every month with the 9% util or just use the same card every month and leave the rest at $0?

Message 3 of 6
Valued Contributor

Re: Credit Utilization

you have to use them all once in awhile or the banks will eventually close your cards.

 

if your statement balanace is $0, then your payment due is $0.... so you can charge money not even worrying about the next due date (since payment due is $0) and then pay the full balance just before the next statement date again..... leaving your statement balance still at $0 and your payment due still $0 again.  This way you can always use the card, you only have to remember one date, and you always pay in full.  It works perfectly.

 

EX:694 TU:744 EQ:777
Amex ED $19.5k - BoA Travel Rewards $15k - CSP $5k - SDFCU EMV $15k - NFCU goRewards $20k - Barclays Arrival $6.5k
Message 4 of 6
Established Member

Re: Credit Utilization

I use all my credit cards all the time, but my question was should i rotate the ones that i leave the 9% on or just use the same credit card each month for the 9% that is left. Since i use all my cards i will pay all balances down to $0, but leave one card at 9% to show on the CR

Message 5 of 6
Valued Contributor

Re: Credit Utilization

It doesn't matter.

 

If you want to keep a revolving balance and use multiple cards, thats ok too... just harder to manage.  From personal experience, I know that if you can keep track of all your totals and all your limits and maintain around 9% or less util among all the cards, you will see a significant score increase.

EX:694 TU:744 EQ:777
Amex ED $19.5k - BoA Travel Rewards $15k - CSP $5k - SDFCU EMV $15k - NFCU goRewards $20k - Barclays Arrival $6.5k
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