topic Re: CC Utilization in Credit Cards

CC Utilization

angelmcd — Wed, 25 Jul 2007 19:50:22 GMT

is it best to pay off a cc every month to $0 or to keep a balance on it?? if the card is a $10,000 and $1,000 max is used monthly and PIF, how does that affect your credit score? i'm asking for a friend...my credit cards are not that high!! i'm not completely sure how the utilization thing works. thanks for any info!!

Re: CC Utilization

fused — Wed, 25 Jul 2007 20:30:56 GMT

angelmcd wrote:
is it best to pay off a cc every month to $0 or to keep a balance on it?? if the card is a $10,000 and $1,000 max is used monthly and PIF, how does that affect your credit score? i'm asking for a friend...my credit cards are not that high!! i'm not completely sure how the utilization thing works. thanks for any info!!

For max FICO points it's best to keep util at 1-9% of your CLs (credit limits) on all CCs and other revolving accounts.

Re: CC Utilization

Anonymous — Wed, 25 Jul 2007 20:37:58 GMT

@angelmcd wrote:
is it best to pay off a cc every month to $0 or to keep a balance on it?? if the card is a $10,000 and $1,000 max is used monthly and PIF, how does that affect your credit score? i'm asking for a friend...my credit cards are not that high!! i'm not completely sure how the utilization thing works. thanks for any info!!

Fico gives you a few more points with a tiny balance. Just using the card (regardless of amount) each month will force the CC company to update your reports. That is where you gain most points. ONLY when you need your score higher, best to pay off, but leave a small tiny balance on 1-4 cards. If you are looking long term, just use each card so they report. Utl works against your score. The more you charge the lower you scores go. UTL is based on a current report and changes the "moment" the report is updated. So if you charge 50% this month and pay it off next month, your score will be different from month to month. Long term you gain points from activity.

Message Edited by ilovepizza on 07-25-2007 01:37 PM