@Anonymous wrote:
I was thinking you pay down after the statement is cut before the payment is due. I was wrong and want to confirm.
"Right" and "wrong" depend on one's specific goals. As stated above, paying prior to report date (whether it's statement or another date) is used to reduce reported utilization. If the goal isn't to reduce reported utilization and to just make a payment then the report date doesn't matter.
@0REDSOX7 wrote:
If you're not applying for new credit any time soon, then don't worry about utilization.
That's oversimplifying in the opposite direction. Utilization always matters but one doesn't need to worry about optimizing to only one balance reporting and <=10% unless applying. The 30% max guideline still applies. One can certainly exceed that guideline for short periods of time but prolonged high utilization can lead to adverse action.
@Anonymous wrote:
Can the 10% be the card with highest limit? Also does this apply to a line of credit account that reports to the CRA's?
10% is the upper end of what is typically optimal. It doesn't have to be exactly 10%. 10% or less. Anything above 0.
@Anonymous wrote:
I will agree with the posters who question the usefulness of the pay-to-zero-before-statement trick.
See:
http://www.myfico.com/crediteducation/whatsinyourscore.aspx
Utilization (Amounts Owed) is 30%. It is a major factor although the usefulness of adjusting utilization may be affected by derogs which typically carry a bigger impact.
I personally don't bother with it though as my limits are sufficent to keep my spend at nearly optimal levels.
@Anonymous wrote:
Yes I'm hoping to apply for car re-fi. I will use "keep one card at 10%" approach.
I'd also suggest hitting Rebuilding and seeing what you can do to address whatever derogs you might have.
@Anonymous wrote:
Ok so you keep a balance on 1-2 cards to attract CLI. What percentage? And how well has it worked? In other words, got a few examples you can share?
There's no fixed percentage that guarantees CLI's. For one thing, creditors don't all have the same criteria. For another, your credit in its entirety is used to assess whether you qualify for a CLI. Utilization is just one factor.
