topic Re: reporting in General Credit Topics

reporting

Anonymous — Thu, 05 Feb 2015 16:45:31 GMT

Hey everyone,

I currently have 2 cards: cap 1 secured CL 850 & cap 1 qs1 500. my avaialbe credit is 1,350

I've read lot of people stating that it's good to only let one card report balance and to let your other cards report a 0 balance.

What's thebenfit of doing this?

The qs is now my main card since I get 1.5% cb. I run about 1k/m through it and pay it down.

Do I only let below 30% report of the 1,350. or 30% of the 500 of my qs card?

Re: reporting

Anonymous — Thu, 05 Feb 2015 16:47:14 GMT

@Anonymous wrote:
Hey everyone,

I currently have 2 cards: cap 1 secured CL 850 & cap 1 qs1 500. my avaialbe credit is 1,350

I've read lot of people stating that it's good to only let one card report balance and to let your other cards report a 0 balance.

What's thebenfit of doing this?

The qs is now my main card since I get 1.5% cb. I run about 1k/m through it and pay it down.

Do I only let below 30% report of the 1,350. or 30% of the 500 of my qs card?

For best results you want one more card and let 1-9% report on one card out of at least three.

Re: reporting

Anonymous — Thu, 05 Feb 2015 17:21:15 GMT

Using your example, you would (prior to the statement date) pay off the $850 and pay the $500 down to somewhere between $1 and $45. However, if you aren't applying for anything, this level of attention isn't required. Make sure you're paying off each card in full every month. Then, try to get each card to below 9% utilization. It's okay if you go over again, because utilization is measured at a moment in time and has no memory, so if you pay it down again, it will be as if the increase in utilization was never there.

Addtionally, don't let the statement cut with both cards at $0. That makes it look like you're not using credit, which can have very bad effects on your score.

Re: reporting

takeshi74 — Fri, 06 Feb 2015 13:17:07 GMT

@Anonymous wrote:
What's thebenfit of doing this?

Better credit scores. Scoring models favor lower (but not zero) utilization and fewer balances. Higher utilization and more balances are generally seen as more of a risk. Utilization falls under Amounts Owed which is a significant factor:

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

@Anonymous wrote:
Do I only let below 30% report of the 1,350. or 30% of the 500 of my qs card?

Both individual and overall utilization matter.