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Posts: 12
Registered: ‎07-14-2012
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Question about Utilization and Balance

Hi There!  I'm relatively new to the forum, and score watch.  I am in the process of obtaining a USDA loan for a home, and have been working on my credit since Nov of last year.  Upon alot of research on this forum, I've had success with 1 collection on my account (sadly, the one that was the least of my concern only reporting to one bureau) which is excellent!  I want to thank everyone for their advice, GW letter templates, and contact information for multiple companies.  It has been worth its weight in gold!


My question now, that i've been thinking about is better managing payments, utilization, and balanes on my 3 open credit cards.


I currently have a BoA secured (300$ CL), Cap1 Secured (600$ CL, 100$ of this is 'unsecured'), and a NFCU unsecured cashRewards card with a 8000$ CL.  I'm trying to figure out what is the best way to manage these, I've read keeping 1-9% utilization is key, is there a sweet spot for these numbers?  Aside from that, the utilization is only important when it reports to the bureau's I believe, so having a high balance up until it reports is possible?  Basically I'm trying to think of the best way to manage these 3 cards to keep me in that util range, make consistant payments at/on the same date, and before the card reports, to refelect a low util on my CR.  


Starting with my BoA card - Payment Due Date is 8/11, and Closing Date is 8/14 - what does the closing date mean?  Does the card report shortly after/on the closing date?

My plan is to make a charge of 10$ or so every month (myFico Scorewatch membership) on this card, let it report, and then after it reports pay it off, and repeat this every month.  What are the dates that these actions happen on?  Is there a better method?


My Cap1 card I intend on filling up my gas tank (30-40$) once a month with this, letting it report, and then pay it off, and obviously repeat this every month.  Same questions as the BoA card, what are the dates for these? 


My NFCU card I want to use as my primary card for everything now, due to the cash rewards.  In order to do this it's important to make sure the balance is paid down each month before it reports (I think), to an acceptable range (1-9%, pref less considering 9% is 750+$)  With that being said, what is the best method for this?  Pay this down each time I log into my online by transfering funds?  What is the days that NFCU reports, and bills?  I just received this card last Friday(20th).  My goal is to have reoccuring dates on my calendar and just follow these for payments/biling dates/report tdates.  Does this sound logical?  Any help is appreciated.

Valued Contributor
Posts: 2,111
Registered: ‎07-29-2011
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Re: Question about Utilization and Balance

[ Edited ]

for the BoA card, have one recurring monthly bill that posts on the 15th of the month of later post to this card. (since statement date is the 14th)


For the Capital one card, do the same thing with having one regular payment post just after the statement closing date.


For the NFCU card, use this continuously for everything else.


Pay all of your balances IN FULL a few days before the statement closing date.   For BoA and CapOne, this will result in a $0 balance being reported to the credit bureaus.  For NFCU, if you are using it continuously, you will have a small balance post because you are using it continuously.  As long as less than $800 posts between the time you paid in full and the statement a few days later, you are GOOD.


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
Epic Contributor
Posts: 29,450
Registered: ‎10-23-2007
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Re: Question about Utilization and Balance

I would say if you are looking to move forward very soon on the mortgage don't get into this payment game right now... to much work if mortgage is really soon

If soon... Just pay the 2 small cards OFF and don't use them at all and I would agree on your Navy make sure it stays below 10%.

I say don't boither using the other cards if close because with what looks like thin file or rebuilding you want as little of complications possible with obtaining mortgage... I wouldn't think it would come down to a $25 payment on Capital One to throw off your mortgage but lets not chance that it could be an issue... and nobody is going to close the account for non use for 60 days or so.

Now if you are not moving forward for another year on mortgage, i would suggest getting the 2 small paid off still and wait a few months on this new Navy and then look at getting 2 replacements for the 2 tiny secured/unsecured you have...

Citi, Discover or something.

What about Mortgage with Navy? seems as though they like you already with that CL they gave you compared to your other stuff!

Posts: 12
Registered: ‎07-14-2012
0 Kudos

Re: Question about Utilization and Balance

It's always an option through Navy - I'm incredibly surprised about the CL, and when they pulled TU for my CC, it reflected a 637 (which is alot larger then the 601 on a report pulled a week before this).  I currently have a NavCheck application pending with them, and was going to inquire about their mortgages when this is complete, since their hard pull for this is good for any loan product.  


We're slowly working on the home thing, with alot of hurdles unfortunately.



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