topic Re: utilization? in Credit Cards

utilization?

Anonymous — Sat, 05 Jan 2013 20:00:49 GMT

I have 2 cards. Cap one platinum 750 limit and a walmart discovery 1000 limit. What would be a good balance to be reported for each of my cards? And do they combine the balance to get your utilization rate at the end of the month?

Re: utilization?

Swapmeet — Sat, 05 Jan 2013 20:08:55 GMT

@Anonymous wrote:
I have 2 cards. Cap one platinum 750 limit and a walmart discovery 1000 limit. What would be a good balance to be reported for each of my cards? And do they combine the balance to get your utilization rate at the end of the month?

0 on one and less than 157 on the other. They do both combine for your util, but I've read here that it is optimum to carry a small balance (under 9%) on only one card.

Re: utilization?

Anonymous — Sat, 05 Jan 2013 20:09:22 GMT

@Anonymous wrote:
I have 2 cards. Cap one platinum 750 limit and a walmart discovery 1000 limit. What would be a good balance to be reported for each of my cards? And do they combine the balance to get your utilization rate at the end of the month?

Total utilization is the sum of the balances over the sum of the credit lines, and this ideally is kept < 10%, but the utilization on each individual card should also be not too high. Many here suggest that you have only one card report a balance, and that about 9%, so following that model, have Cap One report 0 and a balance of about $90 on discover.

But depending where your scores are, you don't need to be over-precise about that.

Re: utilization?

Anonymous — Sat, 05 Jan 2013 20:16:39 GMT

To Ps6054....My score was 734 but after 3 inquires this month and the added account it dropped to 704.

Re: utilization?

chnceit — Sat, 05 Jan 2013 21:04:34 GMT

@Anonymous wrote:
@Anonymous wrote:
I have 2 cards. Cap one platinum 750 limit and a walmart discovery 1000 limit. What would be a good balance to be reported for each of my cards? And do they combine the balance to get your utilization rate at the end of the month?
Total utilization is the sum of the balances over the sum of the credit lines, and this ideally is kept < 10%, but the utilization on each individual card should also be not too high. Many here suggest that you have only one card report a balance, and that about 9%, so following that model, have Cap One report 0 and a balance of about $90 on discover.

But depending where your scores are, you don't need to be over-precise about that.

For some lenders you cannot get approved for their CC if your credit report shows balances of $0 like CITI even if your high balance is not close to your CL some lenders look at it as not utilizing your current credit.

Some on here like me report a high balance on a few credit cards then pay it off right after the statement closes to show usage.

Re: utilization?

youngandcreditwrthy — Sat, 05 Jan 2013 22:28:59 GMT

Keep it as low as possible! But keep 'em active. I'd say def stay under 30% total on all lines....
But aim for <10% for optimal scoring...