topic Re: Shoot, 0% Utilization in Rebuilding Your Credit

Shoot, 0% Utilization

bahbahd — Sat, 18 May 2013 06:30:51 GMT

I thought I was going to have one or two auths go through on this statement on my one open CC. Paid all that was due today. Logged in and see no posted debits. I paid down to zero the same day my statement cut. Normally it would be the 19th, but that is Sunday. I literally have $5000 even in avail credit. I was going to app for discover, but now it looks like I don't use my current card. Big deal? Not happy with 0% utilization this month. Should I wait a month to app?

Edit: and I meant to post this in CC forum. Ooops

Re: Shoot, 0% Utilization

DaBears — Sat, 18 May 2013 12:21:06 GMT

How many credit cards you currently have? keeping a $0 UTIL can hurt your score and Fico likes to see some type of movement on the cards each month.

Re: Shoot, 0% Utilization

bahbahd — Sat, 18 May 2013 13:07:10 GMT

Just one open revolving right now. It reported +$800/5000 last month even though I pay the full balance two or three times a month. I thought a few more auths would go through. I just assumed my statement cut date this month would be the 19th or 20th. I guess I am waiting to see what my score does (and maybe a month) before apping for another new card

Re: Shoot, 0% Utilization

DaBears — Sat, 18 May 2013 13:13:57 GMT

Keep it between 1-9% UTIL every month!!!!

Re: Shoot, 0% Utilization

Anonymous — Sat, 18 May 2013 13:29:02 GMT

I absolutely disagree. If you only have 1 revolving account, I'd go for 0% utilization. For ideal scoring, I wouldn't play the 1-9% game unless I had 3 open cards. 0% utilization on 2 of them, and 1-9% utilization on one of them. Definitely get some opinions on the CC board about what criteria you should shoot for to app for Discover. I got mine when I had 4 open cards.

Re: Shoot, 0% Utilization

bahbahd — Sat, 18 May 2013 13:30:58 GMT

Yea, I've been trying. You almost have to strategically plan when charges post and the pay down amount before you stop using the card for almost a week before the statement cut date just so nothing random happen and bumps your ending balance

Re: Shoot, 0% Utilization

bahbahd — Sat, 18 May 2013 13:34:15 GMT

Re, discover. I have many positive accounts that were closed due to nonactivity. They have soft pulled me and have sent me 3 preselected offers in less than 6 weeks. I feel like they want me to app

Re: Shoot, 0% Utilization

Anonymous — Sat, 18 May 2013 13:42:22 GMT

I would personally pull the trigger. Are they sending you offers for the IT or the More? People seem to love the IT.

Worst case scenario - turned down, and if you were, you'd get a score and have the opportunity to recon.

If that happens, I'd apply for another card I wanted while you're using hard pulls anyway.

Also, you could consider asking if those other cards would consider re-opening.

Re: Shoot, 0% Utilization

bahbahd — Sat, 18 May 2013 13:59:01 GMT

I think I will app after the balance reports this month. I wanna have three revolving accounts open soon.

Re: Shoot, 0% Utilization

Anonymous — Sat, 18 May 2013 14:08:20 GMT

I don't know why you want a balance reporting on your only revolving account. I really think you're better off, since you only have 1 revolving account, to do it at 0% utilization.

Re: Shoot, 0% Utilization

Anonymous — Sat, 18 May 2013 15:20:52 GMT

What you are told on the rebuilding forum may not necessarily be right for the CC forum. Using the reporting of a balance of 9% or under is the best way to see your score go up while rebuilding. It may or may not be the case when you are beyond that stage.

Though there are some on the CC forum that use that 9% or under, others don't and it may work for them.

Even with only one CC, it has been found that having a small balance report works best. FICO likes to see you use your credit but wisely and generally does not like to see your CC at 0 balance. Every situation is different, every credit profile is different and scores definitey have everything to do with your profile.

YMMV. But utilization is one thing that you can tinker with to find what works best for you. If it doesn't give you what you want one time, do something different and see what happens.