Utilization Question

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

Right now I have a Cap One Platinum with a $501 limit. The balance is $191.62.

Last night I was approved for a Cap One Quicksilver One with a $500 limit. 

Question. I am trying to raise my credit score from 612, 607 & 612 to at least 640 in the next year. In order to not overextend myself financially, what should my utilization be on both cards monthly? Is there a certain time of month that is best when paying down/off the balance?

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Perfect utilization for scoring is <10% on one card at time of statement, and 0% on all other cards. However, that is not realistic for some people to do. Just keep it <30% total utilization at time of statements and you'll be fine. If you need to use more than the 30% by all means do it but just pay it down BEFORE the statement cuts as they only report utilization once per month at time of statement cut.

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+1. 30% should be fine. Just for perfect scoring 10% utiliation. This can be difficult. 

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10% is not what's recommended for 'perfect' scoring.  Most commonly you will see 1% on one card and 0 on the others as being suggested for ideal scoring.  

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Thank you for clearing that. I was meaning more on one card and 0% on everything else. 

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

Right now I have a Cap One Platinum with a $501 limit. The balance is $191.62.

Last night I was approved for a Cap One Quicksilver One with a $500 limit. 

Question. I am trying to raise my credit score from 612, 607 & 612 to at least 640 in the next year. In order to not overextend myself financially, what should my utilization be on both cards monthly? Is there a certain time of month that is best when paying down/off the balance?

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Perfect utilization for scoring is <10% on one card at time of statement, and 0% on all other cards. However, that is not realistic for some people to do. Just keep it <30% total utilization at time of statements and you'll be fine. If you need to use more than the 30% by all means do it but just pay it down BEFORE the statement cuts as they only report utilization once per month at time of statement cut.

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I do paperless billing. My due dates are the 11th of the month. Where would I locate the statement cut?

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What day do you receive the email that statement is due? The closing date would be the day before you get notified that the statement is generated. It should show on your statement, like a time period from the beginning to the end of your statement cycle. Should be a few days or so after the due date typically. 

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Says the billing cycle is the 15th of the month to 14th of the next month.

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So just pay it down by the 14th of the month then. That is your closing date.