UTILIZATION QUESTION!!! Please open and respond!

[Anonymous]

At last reporting, my CAP ONE was at $721, I just made a payment today - statement date on the 21st - of $350  - which brings card utilization under 50%, just wondering how that will help my scores... Total utilization on all three cards will then be at 32%. I'll pay off fully next month - or should I pay off even more this month - and maintain at 1% to 9%? Which will help more over a 3-6 month period???

[Anonymous]

Have one card report <9% and the other report zero. That is the Fico sweet spot.

TBC

[drkaje]

Utilization is a part of how scores are calculated so getting under 50% should help a lot. People generally say let a balance of 9% or less report monthly on one card.

[Anonymous]

Yeah I remember reading that, I'm just wondering if paying some now and down to 9% next month will net more points than paying all down in one month with 9% reporting in subsequent months...

[Anonymous]

The score simulator shows doing it over 3 months nets more points which has me wondering...

[FrugalRican]

If the statement date already cut, then there is nothing you can really do for the next 30 days as far as scores are concerned. It'll just have the snapshot sent by Cap1 to the CRA's.

If your card is bearing any interest and isn't a promotional offer, I'd definitely PIF before the due date.

For the next cycle, I'd definitely stay in between 1 and 9% (whether that means just charging up to 1% to 9% of your card at the next statement date or bringing down that balance to that percent at statement date, is up to you).

[Anonymous]

I've been watching closely and really certain I paid before the due date and that the balance when my statement cut captured payments made up until and on the due date and the due date is tomorrow and it's after hours. Maybe I should go ahead pay down more but that will really, really, really be stretching myself thin for the next month...

[Anonymous]

Fico scores do not have a memory. If you pay it down now or over 3 months it will have the same score impact. The only difference is one takes 3 months to get to the same score you can have next month.

TBC