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New Contributor
Sheisaking
Posts: 70
Registered: ‎01-07-2013
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Credit Utilization Question

I am in the process of rebuilding my credit after making stupid mistakes when I was younger. So far, I have been able to increase my score signifcantly. I have recently obtained a Captial One Secured credit card. I need to understand something about the utilzation percentage. I understand that I should try to keep my utilization between 1% and 9%. My card limit is $200. Here is my question:

 

If I spend $50 in a month, but pay $25 before my bill actually generates, will my utilization be based on the $50 I spend during the billing cycle or the $25 that is reported on the statement?

 

I have called Captial One and no one seems to be able to answer that question for me. I hope someone can here can help. Thanks in advance.

 

 


Starting Score: 400s
Current Score: Equifax: 676, TransUnion: 710, Experian: 721
Goal Score: 750 or higher


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guiness56
Posts: 22,408
Registered: ‎01-17-2008
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Re: Credit Utilization Question

It will be based on what is reported to the CRAs.  If you spend 50 but pay 25 before they report, it will be based on the 25.

 

You can spend whatever you like as long as it reports 9% or below.  They normally report the day of or within a few days of the statement date.

New Contributor
Sheisaking
Posts: 70
Registered: ‎01-07-2013
0

Re: Credit Utilization Question

Thank you so much for replying Guiness56. This makes me feel so much better.


Starting Score: 400s
Current Score: Equifax: 676, TransUnion: 710, Experian: 721
Goal Score: 750 or higher


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New Contributor
ABuckNow
Posts: 107
Registered: ‎03-03-2013
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Re: Credit Utilization Question

I had a CapOne secured until about a month ago - the balance they reported for me was ALWAYS the current balance on my statement date.  You can see what day it is on your account details page when you log in (or look at your paper statement).

If you're worried about timing at all, it usually took 1-3 days from that statement date until it actually showed up on my reports.  But the "Date Reported" and "Balance" on the TL was always straight from my statement date, and they did report every month.

New Contributor
Sheisaking
Posts: 70
Registered: ‎01-07-2013
0

Re: Credit Utilization Question

Because you had a capital one credit card, your response was really reassuring ABuckNow. Thank you.


Starting Score: 400s
Current Score: Equifax: 676, TransUnion: 710, Experian: 721
Goal Score: 750 or higher


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