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Member
Posts: 6
Registered: ‎02-18-2009
0

Utilization Percentage Help

Sorry for the newbie question but here it goes.

 

I have 3 revolving credit cards: Washington Mutual, Capitol One, and a Target Store Card (non-visa). I'm very close to $0 balance on all of them (within $300 on each). My EQ score is now 647 according to Score Watch.

 

My question is this: when they say you should have 10% (?) of revolving credit being used, do they mean on each credit card or is that all 3 of mine total. I'm trying very hard to get my score up to a good level, and paying them off is going to help a lot (I hope!). I just want to make sure I'm doing the right thing and know how much to charge and pay off to reflect being responsible to these people. 

 

Thanks for the help! :-)

Starting Score: 655
Current Score: 745
Goal Score: 800
Moderator Emeritus
Posts: 16,385
Registered: ‎03-12-2007

Re: Utilization Percentage Help

Welcome to the forums!

 

Please read the closing credit cards link in my sig line to understand how both individual and overall utilization are calculated. As for the number cards reporting a balance, I would keep a balance of only 1-3% on one card. The other two cards should report $0 balances for max FICO points.

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: 27 years ~ AAoA: 13 years ~ Util: 1% ~ Inqs: TU 1


Credit Cards: Amex BCP ~ Amex Clear ~ Amex Platinum ~ Barclay Ring World Mastercard ~ Chase Freedom Signature Visa ~ CITI Dividend World Mastercard ~ FIA Fidelity Investment Platinum Visa ~ First Hawaiian Bank Gold Visa
Member
Posts: 6
Registered: ‎02-18-2009
0

Re: Utilization Percentage Help

Thanks for the help! Sounds good to me.

 

One more thing: does it matter whether it is the Target Store Card or the regular credit cards that is used for the 1-3%? 

 

Thanks so much again for your help. :-)

Starting Score: 655
Current Score: 745
Goal Score: 800
Member
Posts: 6
Registered: ‎02-18-2009
0

Re: Utilization Percentage Help

Also, I was thinking -- maybe I could just rotate which one of the 3 has 1-3% between the three every 3 months so they don't close them? Is that wise?
Starting Score: 655
Current Score: 745
Goal Score: 800
Moderator Emeritus
Posts: 16,385
Registered: ‎03-12-2007

Re: Utilization Percentage Help

I would let a major card report a balance; a Visa, MC, Discover or Amex would do.
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: 27 years ~ AAoA: 13 years ~ Util: 1% ~ Inqs: TU 1


Credit Cards: Amex BCP ~ Amex Clear ~ Amex Platinum ~ Barclay Ring World Mastercard ~ Chase Freedom Signature Visa ~ CITI Dividend World Mastercard ~ FIA Fidelity Investment Platinum Visa ~ First Hawaiian Bank Gold Visa
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Moderator Emeritus
Posts: 16,385
Registered: ‎03-12-2007

Re: Utilization Percentage Help


AndyJB2005 wrote:
Also, I was thinking -- maybe I could just rotate which one of the 3 has 1-3% between the three every 3 months so they don't close them? Is that wise?

This would be a smart move. You don't have to do it every month, every few months would be fine. Its really up to you. Keep in mind that almost all CCCs report your statement balances, so to avoid having balances reporting, pay your CC bills 3-5 days before their statement dates. You won't pay any interest too.

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: 27 years ~ AAoA: 13 years ~ Util: 1% ~ Inqs: TU 1


Credit Cards: Amex BCP ~ Amex Clear ~ Amex Platinum ~ Barclay Ring World Mastercard ~ Chase Freedom Signature Visa ~ CITI Dividend World Mastercard ~ FIA Fidelity Investment Platinum Visa ~ First Hawaiian Bank Gold Visa
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