trying to understand util

[nate17]

I've tried to read up on the subject as much as possible, and from what I've gathered it's best to stay at 1-9% util. My question is, when? Is this after you've paid your monthly bill, or at any point in time you should never have your balance higher than 9%?

I'm currently in a rebuild process with scores of 590-620 and recently was approved for the unsecured NFC nrewards card. Being that it has rewards I figured I'd put my purchases on it and pay it off in full each month to avoid interest. Please she'd some light on how to use a cc to maximize your credit scores util points.

[guiness56]

Utilization is scored by individual card and then overall.  FICO will ding you if all your cards report a balance and likewise if none of them do.  It would rather see a small balance than a 0 balance.

If you only have one CC, you can use as much as you want of the available limit.  But, make sure you pay it down to 9% or below before it reports to the CRAs.  Once it reports, pay in full before the due date to avoid interest.

You will need to know when they report to the CRAs.  Typically, it is done around the time the statement cuts.  You can contact them and ask when they report.

[mlibby]

The way i have been doing mine is if the payment is due on the 15th i pay all but 1 dollar on the card by the 10th not sure if that makes sense?

Like with my gap card ill buy a shirt for 9.99 and pay 8.99 and then late a statement generate for 1.00

[gdale6]

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@mlibby wrote:

The way i have been doing mine is if the payment is due on the 15th i pay all but 1 dollar on the card by the 10th not sure if that makes sense?

Like with my gap card ill buy a shirt for 9.99 and pay 8.99 and then late a statement generate for 1.00

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If you are not paying the statement balance in full by the due date you will be assessed finance charges. If you are charging and then payoff the balance prior to statement except $1.00 then that is okay. You of course want to have all your other cards at 0 balance prior to the statement cut.

[mlibby]

When my statement cuts i have 1.00 on them they are paid in full before the payment is due always

[gdale6]

ok, you are doing it the right way.

[mlibby]

The only reason i have a 1 dollar balance to get the statement to generate to get the auto cli on the cards, is that not a good idea?

[gdale6]

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@mlibby wrote:

The only reason i have a 1 dollar balance to get the statement to generate to get the auto cli on the cards, is that not a good idea?

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A statement should be generated as long as their is a purchase on the account during the month whether or not the balance is at 0 on stmt day or not. If this is a GECRB backed card letting the buck report is prob a good idea as sometimes they wont bother with a statement even if there was a purchase and you paid it to 0 before stmt day.