Your credit card utilization has decreased by 29% since your last score update on Aug 11, 2014

[Anonymous]

I'm trying to understand the utlilization on my credit card.  As of today I just recieved an update about my credit card and I am not sure if I understand it correctly.  As the tittle stated is this a good thing or bad?  I have search that its good to keep your credit card utlilization below 30% correct?

Date:                         Credit Card Limit:                       Open CC Debt (w/Limits):                      Utilization:                     Grade:

1. Aug 11, 2014              $500                                                        $143                                            29%                            B            

2. Aug 12, 2014              $500                                                        $0                                                0%                              C

Above is an update I recieved. I have a credit card limit of $500.  I proposely carry over a balance of $143 in the month of June and I got hit with 21.99% interest from Capital One to see if anything change from good to bad or from bad to good. Last month I paid of my balanch in full so It carry over a 0 balance  to this month.

My question is my grade is droping from B to C or its increase from C to B? am I doing this correct to leave balance under 29% and have Capital One din me with their high interest or paid off all each month?  I mainly used my card from gas.

Please help me understand what is good and bad and what should i do from now to keep my score up high?

Thanks in advance.

[OhioCPA]

@Anonymous wrote:

I'm trying to understand the utlilization on my credit card.  As of today I just recieved an update about my credit card and I am not sure if I understand it correctly.  As the tittle stated is this a good thing or bad?  I have search that its good to keep your credit card utlilization below 30% correct?

Date:                         Credit Card Limit:                       Open CC Debt (w/Limits):                      Utilization:                     Grade:

1. Aug 11, 2014              $500                                                        $143                                            29%                            B            

2. Aug 12, 2014              $500                                                        $0                                                0%                              C

Above is an update I recieved. I have a credit card limit of $500.  I proposely carry over a balance of $143 in the month of June and I got hit with 21.99% interest from Capital One to see if anything change from good to bad or from bad to good. Last month I paid of my balanch in full so It carry over a 0 balance  to this month.

My question is my grade is droping from B to C or its increase from C to B? am I doing this correct to leave balance under 29% and have Capital One din me with their high interest or paid off all each month?  I mainly used my card from gas.

Please help me understand what is good and bad and what should i do from now to keep my score up high?

Thanks in advance.

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If you only have one credit card, then you likely will see your best score from having less than 9% report on the card. In your case with a $500 credit limit, you don't want more than $45 reporting. You don't want to carryover a balance and be charged interest. The key is to have the statement cut and pay in full by the due date. Again, in your case you don't want more than $45 on the statement.

I assume you are not quoting from a FICO score monitoring service but It appears that your score dropped as a result of the total utilization going to zero. Letting a small amount report will likely correct this. 

[dumaine]

So what Ohio is saying is that if that 143 was around 45 then that B might have been an A. The C is due to the fact that you let 0 report and showing no usage. 

[Anonymous]

Thanks for the quick reply guys....

If I understand you guys correctly is dont paid off my CC before the due date? Leave a small balance for next month?  I am trying to figure out how to manage my CC and to keep my score high.

so let say if i use my CC for 100$ that mean its good thing to paid 65$ and leave 45$ to keep the small balance for next month? IF I do this i will get hit with high interest?

So what I am understanding is do NOT paid in full before the due date because it will carry over 0 balance?

[jamesdwi]

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@Anonymous wrote:

Thanks for the quick reply guys....

If I understand you guys correctly is dont paid off my CC before the due date? Leave a small balance for next month?  I am trying to figure out how to manage my CC and to keep my score high.

so let say if i use my CC for 100$ that mean its good thing to paid 65$ and leave 45$ to keep the small balance for next month? IF I do this i will get hit with high interest?

So what I am understanding is do NOT paid in full before the due date because it will carry over 0 balance?

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for scoring purposes, even $1-5 is fine... around 1% UTL is best, but not zero.  This only really matters if you are actively searching for new credit, having 0 reporting accross the board is great.  

[Anonymous]

I always been told that always leave 0 balance and paid in full and paid it off your CC before the due date....now you guys telling me to leave a little balance?

I have a very low score 500-600 ish...I am trying to build up my score.

Current I have

2 collection in file but working on paying it off and resolving.

1 auto loan in good standing never late or miss a payment

1 capital one CC

1 personal loan from DCU bank

A few months ago I had

7 collection ( currently have 2 paid off some and did settlement some)

1 auto loan

As you can see I added 1 CC and 1 personal loan into my account and Paid in full and settlement on 5 collection.  But myfico still low 500-600 score.

I am trying my best and finding a way to increase my score so I can get a better interest rate on my auto loan and perhapes buying a house down the road.

What is you guys suggestion?

[OhioCPA]

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@Anonymous wrote:

Thanks for the quick reply guys....

If I understand you guys correctly is dont paid off my CC before the due date? Leave a small balance for next month?  I am trying to figure out how to manage my CC and to keep my score high.

so let say if i use my CC for 100$ that mean its good thing to paid 65$ and leave 45$ to keep the small balance for next month? IF I do this i will get hit with high interest?

So what I am understanding is do NOT paid in full before the due date because it will carry over 0 balance?

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No, you should pay your CC in full by the due date. You just want to receive a statement for the current month with a small balance. For example, lets say you charge $35 in August. When your statement for August is cut the balance will show $35. This will give you a utilization of 7%. The statement balance will be reported to the CRA. You then pay in full by the due date.

[jamesdwi]

research  PFD (pay for delete),  for scoring purposes paying off a debt has no value other than PFD. a paid debt will sit on your report for 7 years. The ones you have allready paid send goodwill letters asking that they will be removed, this is even harder to accomplish than PFD in most cases. That will help your score the most.

You may want to get a 2nd and a 3rd card if you can handle it, try for Shopping cart trick cards, no INQ just a new TL, get them at a store that has products that interest you.

[Anonymous]

how do I know when my summarry is cut off? for sample my due date is on the 5th of each month. I try to paid my balance off between the 1st to the 4th....When do you guys recommend me to paid in full?

[dumaine]

look for the statement date