Credit Card Center Advertiser Disclosure

New Member
Posts: 5
Registered: ‎03-22-2007
0 Kudos

balance to limit ratio- a question

so should i use my card to 30% (or 10% as some have suggested) then pay off each month (what i am currently doing)- i end each month with a zero balance. should i wait to pay so the CC company reports that i am using this ratio, or should i keep paying as i am. i usually pay a few days before the due date, in full, online. will waiting til the report goes out bump my credit up? it has been at 690 forever, despite CC company raising my limits (750 to 5500!) and getting a substantial car loan. please advise, thanks, e
Moderator Emeritus
Posts: 5,436
Registered: ‎03-10-2007
0 Kudos

Your overall utilization should never exceed 30% or 10 as...

Your overall utilization should never exceed 30% or 10 as some say.  Having balances on too many of your cards can also effect your score negatively.  I have been using this stategy and it has worked for me.  I have one card with a high utlization (52%) due to a large purchase.  I pay this one off at 300.00/mo.  I have a cash back card that I use for day to day purchases and PIF every month.  The rest of my cards, until they make me a better offer are used for occassional purchases every few months just to make sure they are actively reporting.  I rotate which one to use.  Awesome since I can now buy gas at Sam's Club using my Walmart card.  I drive a small card so it keeps that occasional purchase to under 20.00.
Even though you may PIF every month it doesn't mean that's the balance being reported to the bureau.  Some cards report balances as of EOM.  For example, yur payment is due on the 7th onf the month, you pay it off.  Between the 7th and the 30th you use 50% of your limit. If you have a card that reports EOM, it will report the 50% utilization as opposed to your sterling PIF history.   I generally know which cards report when so I make a min payment on the statement date and then pay the rest off right before the reporting date.  If I goof, at least I got the min in but so far its been working

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.