Question about Credit utilization % with charge card

MT936 — Tue, 01 Jul 2014 04:25:18 GMT

I just got approved for the PRG Amex. It will be my first charge card and I currently have 5 credit cards. I have heard that charge card balances do not factor into your overall credit utilization %. I wanted to know if this was true wouldn't it be technically better to charge everything on a charge charge and very little on your credit cards since a low credit utilization will help your score? I always pay in full on time so I was just wondering if it would help charging most if not all charges on a charge card.

OP,

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Re: Question about Credit utilization % with charge card

SnackTrader — Tue, 01 Jul 2014 03:27:28 GMT

@MT936 wrote:
I just got approved for the PRG Amex. It will be my first charge card and I currently have 5 credit cards. I have heard that charge card balances do not factor into your overall credit utilization %. I wanted to know if this was true wouldn't it be technically better to charge everything on a charge charge and very little on your credit cards since a low credit utilization will help your score? I always pay in full on time so I was just wondering if it would help charging most if not all charges on a charge card.

If you are paying in full, you should be able to effectively manage your utilization regardless of the effects of a charge card by simply paying things off/down before the statement cuts. When you aren't paying interest and carrying balances, purchases should go to the cards with highest reward values.

topic Question about Credit utilization % with charge card in Credit Cards

Question about Credit utilization % with charge card

Re: Question about Credit utilization % with charge card