topic Re: Question about Usage and Utilization in Credit Cards

Question about Usage and Utilization

Anonymous — Mon, 28 Oct 2019 17:49:40 GMT

Hi All. New here, been reading recent topics and searched a few older ones.
Trying to be better about making my credit cards work for me. I am carrying some debt on a few cards, Taxes one year due to a W-4 error. A couple others due to taking a pay decrease and not supplementing my income for a couple of years hoping for a promotion.

Anyway, I have about 6 cards at a $0 balance and 4 cards at 80% utilization.
My question is, if I use my empty cards once per month and pay off before statements generate, would I have a better chance at CLI's? the cards are with Amex, Chase and Discover.

Or, would it not matter their usage due to the high utilization cards?

Re: Question about Usage and Utilization

Anonymous — Mon, 28 Oct 2019 17:54:12 GMT

That's a somewhat loaded question. Some lenders, like Discover like to see use before they give a CLI. AMEX, on the other hand, doesn't seem to be swayed by use, or lack thereof.

All that said, the high utilization on your 4 cards (and probably a bit high overall), are going to throw you some roadblocks. Generally speaking, lenders don't like prolonged high utilization.

Re: Question about Usage and Utilization

Anonymous — Mon, 28 Oct 2019 18:02:09 GMT

Thanks for the reply. I figured as much. I have been fortunate that 2 of the cards are with Citi and they have been giving me a yearly CLI on the cards, so the utlization is going down 2 fold (payments and CLI).

I just want to maximize my other cards, but I don't want to cycle them every month if it won't really benefit. I don't have too many auto-payments either to put on them.

Re: Question about Usage and Utilization

Anonymous — Mon, 28 Oct 2019 18:04:25 GMT

Well, since they're all automated at this point there's different things you can do.

Absolutely not using cards gives the computer little to no reason to offer a CLI based on lack of spend. So, I would at least do something like Amazon reloads for $5/mo and turn around and pay it off or setup autopay for the balance on those cards.

Chase is the tougher one to deal with as every CLI is a HP vs the other 2 which are SP's.

The high UTIL fortunately won't leave a lasting impact once it's paid off. The more cards you can bring to a $0 balance the better but, getting under some lower thresholds will bring some additional points to your scores.

Ideally if you could list out the CC's with bank/CL/Use/%/APR maybe there's a solution to be had in finessing the #'s and saving some cash on the interest. There might be a way to shuffle some of the debt around a bit to make it easier to tackle. Another potential option is PL's with lenders you're already with that bring the rates down to 6-9% instead of 20%+.

Re: Question about Usage and Utilization

Anonymous — Mon, 28 Oct 2019 18:10:08 GMT

I hadn't thought of the Amazon reloads. I could just do that to keep them being used. I have a plan to tackle the cards with higher utilization. I am about to pay off a PL that will allow me to put that $300/month payment towards the cards, plus some end of year bonuses and with tax return, I'm about to do some decent damage. Just wanted to maximize my $0 cards, so the amazon auto loads would be ideal.

Re: Question about Usage and Utilization

Anonymous — Mon, 28 Oct 2019 18:24:36 GMT

Sounds like you have a plan and new option to keep things active.

Re: Question about Usage and Utilization

M_Smart007 — Mon, 28 Oct 2019 18:55:26 GMT

@Anonymous .. Welcome To myFICO Forums!

Re: Question about Usage and Utilization

M_Smart007 — Mon, 28 Oct 2019 18:59:52 GMT

@Anonymous wrote:
I hadn't thought of the Amazon reloads. I could just do that to keep them being used. I have a plan to tackle the cards with higher utilization. I am about to pay off a PL that will allow me to put that $300/month payment towards the cards, plus some end of year bonuses and with tax return, I'm about to do some decent damage. Just wanted to maximize my $0 cards, so the amazon auto loads would be ideal.

I have used Amazon & Starbucks

try to get your individual Utilization below 28.9% .... go a little lower if you think they will tack on interest. GL2U