how much balance to keep on credit cards?

[mackandblues]

FICO score around 600, 2 citibank credit cards - one with limit of $2,700 and current balance of $2,400 and one with limit of $2,000 and current balance of $1,000.  So what balance should I keep on the cards to optimize my credit score as far as these credit cards go? 

[gdale6]

One completely paid off prior to statement cut the other paid down to 1-9% of its CL prior to stmt cut day.

[Shogun]

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@gdale6 wrote:

One completely paid off prior to statement cut the other paid down to 1-9% of its CL prior to stmt cut day.

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^^  I love this answer!

[alvon123]

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@gdale6 wrote:

One completely paid off prior to statement cut the other paid down to 1-9% of its CL prior to stmt cut day.

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+1

[mackandblues]

Thanks for the help!

[SuburbanGuy80]

Keep your overall utilization under 10%, basically on all of your credit cards to achieve maximum credit score increase, use the cards monthly, keeping a small balance on one of your cards and the others at zero helps of course. Because i only have two cards, i keep a balance on one card one month...pay off the other card before statement cuts, then switch it and do the same for the other card. I pretty much use my two CC's as my debit card. Hope this helps.

[RobertEG]

Certainly, keeping your cards at their best FICO scoring levels each and every month is great, if you have that kind of peristance.

However, for those of us who dont have that persistance, keeping the balance at a level such that you, when ready to actually app for new credit, have the funds to get the accounts to their best scoring levels a couple of months before applying will get you to the same point.

My caveat, however, would be that having very high util over a period of time might result in the secondary issue of the creditor reassessing your CL.

If they become ansy, they may reduce your CL as a means to reduce their potential risk.

I would keep it under 50%, even if you have the funds to reduce util to under 10% when needed.

[jimbro]

Hi, is it better to keep a small balance on one card or pay off all cards before the statement date?

Thanks for your help.

Jim

btw.. i have 3 cards

[-Wade-]

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@gdale6 wrote:

One completely paid off prior to statement cut the other paid down to 1-9% of its CL prior to stmt cut day.

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I agree 100 % but i only let the1 card report 1% of the CL to get my Max score. Sometimes i let the 1 card report only a few dollars.

My 2 cents worth

[guiness56]

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@jimbro wrote:

Hi, is it better to keep a small balance on one card or pay off all cards before the statement date?

Thanks for your help.

Jim

btw.. i have 3 cards

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Let 2 of your cards report a 0 baalnce and the last one at 9% or below.  FICO will ding you for all cards reporting a balance and for all cards reporting a 0 balance.