Utilization %

[Anonymous]

Credit Utilization Chart

> 01% - 14% -- excellent 

> 15% - 19% -- good

> 20% - 24% -- fair

> 25% +         -- poor

From what I have read and personally experienced, the more you use your card and pay it quickly then the bank is happy.  However, when the bill is cut if you are over the utilization percentages above, can increase or decrease your score.  My usage is that I charge about $2,000 a month with a $2,700 credit limit.  It seems as long as I pay the balance say on week 3 -- one week prior to the statement cut date and allowing for the payment to clear plus keep the utilization around 7%, my score keeps going up.  From December 2011 to Present July 2012, my Trans Union score has gone from 552 to 680.  

Anybody have any comments whether my chart above is correct, incorrect, or how to improve it.  Basically getting into the mind of the loan officer.

[Anonymous]

Seems estimately accurate to me! I just learned of this a few months ago. First thing to do, if possible is call ALL creditors for revolving accounts and politely ask when they report to credit bureaus. If you're nice most will simply tell you. Most of mine seem to report within 7-10 days after payment is due. But if you know when they report you can be sure to pay down balances, as you mentioned, until clear of report date, then charge away again if necessary. This will give the impression on your credit report that you have 0 balance every month even if you're charging close to max for 3/4 of month. Doing this for several months will significantly boost your score! Mine actually jumped 75 pts from doing this as opposed to before when i was having a very high utilization $.

[nvrgiveup08]

Still trying to get the hang of this utilization. I have one card with a 1200 limit and a $147 balance and three other cards with a zero balance. Statement just cut before I PIF the balance on the Discover Hope this doesnt make my score drop. Im stuck at a 611 and need a 680 by November.

[Anonymous]

I just applied for a mortgage and was approved. I asked the loan officer for my scores and she sent me a snapshot of the trimerged report. It had some suggestions for improving my score by 34 points on two and 24 on one. I asked her what they were and she basically told me to pay down the balances of the revolving accounts and to never go over 30% utilization.

Not sure if I wanna buy now or later. Wanting to improve my scores some but since I am looking at a first time home buyer loan, I am not sure if that matters. Waiting on her to respond to that question.

[tammyjk]

If you look at your statement dates and give yourself enough time for a payment to post, you will be good.  I always pay online 4 days before statement dates.  I also try to keep utilization below 10 percent.  Not always easy but I try. 

[Anonymous]

I'm planning on refinancing my car next month and playing the utiliaztion game right now. Card with a $300. limit closes today and is PIF. Another with a $750. limit closes on Sunday, that will be paid down to $495. tomorrow (best I can do this month) and then my other card with a $750. limit will be PIF before the statement closes on the 10th. I just need about 10-12 points to get to 660 so I think this might get me close. 

After the last card reports, I'm going to submit some auto loan apps. 

I have a pre-approved Merrick Bank card app for $1k. Would it be worth sending that in now so it's opened in the next month.They would probably do a hard pull when they process the app.  I'm thinking this might help utilization % but then again, it might not report until after the first statement closes.

[Anonymous]

Oh yeah, one thing that I noticed recently, one of my Cap 1 cards reported mid-statement.  My report was showing the balance as of when the statement closed and then a few weeks later, it was showing my higher balance. Hum...

[tammyjk]

I had that happen to me as well with Cap 1 and really really messed me up.  I had an emergency and had to almost max out that card in the middle of the month.  I knew it would be paid off before the statement.....but they reported in the middle of the month.  It was corrected asap when I called them.  I have been reluctant to use that card since. 

As far as the Merrick, remember that when you get a new card it brings down the age of accounts.  So while it may help you with utilization it may hurt you the with age.  If you are that close, I would just work on paying down balances and then get the card.