Keeping Credit Cards at 9% utilization. Worth it?

[Reighn9]

Why have a credit card if you have to keep it below 9%? You are encouraged by merchants and banks to use their cards, but when you do, you are told not to use them, or you are using them too much.  A lot of places only take credit cards. If you have a $500 card which most of my cards are, you can only charge $45.  What's the use in having a credit card?  Most companies don't issue the first card any higher than $500.  And if you don't charge anything, you don't establish credit.  Who makes these rules, and why is it so hard to find out every factor that effects your credit?

[guiness56]

You can charge as much as you like as long as you pay it down to 9% or under before it reports to the CRAs.  Utilization is a huge factor in your score and FICO likes to see you use credit but wisely.

Here is something that may help you about the different factors used in scoring:

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

[sphinx313]

How credit utilization works is, you can have a $20,000 credit line, but it's not advised that you keep a $12,000 balance on it. That's not what the line of credit is for. I personally look at credit lines as a way to get something I need now that I don't have the cash reserves for, or maybe even for points or airline miles like some other cards offer.

You can leave a balance sure, but your score will suffer because it will APPEAR as though you are "living" off of money that you don't have. You're encouraged to buy something for $300 on your $500 walmart card...just pay that $300 down to $50 or $0 when you get your paycheck. Again, I use credit as a tool to get me by until my paychecks come in.

[tmobileguy]

Just pay the balance before they report...thats all....use it to its full max if you wish, just make sure to pay it back down before they report your balance and you will be keeping everyone happy...