topic Re: Utilization: Does balance matter, or only percentage? in Rebuilding Your Credit

Utilization: Does balance matter, or only percentage?

seruby — Fri, 12 Jun 2015 16:08:20 GMT

When considering utilization and reporting, does the balance report have any effect or is it just the percentage?

Say I have 2 credit cards - one with a 500 limit and one with a 5000 limit. If I get them to report 1% alternating months, that would be $5 and $50. So month 1, it would show $5 of $500 (1%) on the card and $5 of $5500 total, and the other card would show $0. Month 2, the card that previously reported would show $0, and the card that reported $0 would now show $50 of $5000 (1%), and $50 of $5500 total. The difference in reporting would be +$45 since it now shows $50 open balances instead of $5. Then the next month, the balance would decrease by $45, going back to $5.

Does the change in balance impact scoring, or does it not matter as long as the overall percentage is still the same 1%?

Re: Utilization: Does balance matter, or only percentage?

Anonymous — Fri, 12 Jun 2015 16:14:45 GMT

@seruby wrote:
When considering utilization and reporting, does the balance report have any effect or is it just the percentage?

Say I have 2 credit cards - one with a 500 limit and one with a 5000 limit. If I get them to report 1% alternating months, that would be $5 and $50. So month 1, it would show $5 of $500 (1%) on the card and $5 of $5500 total, and the other card would show $0. Month 2, the card that previously reported would show $0, and the card that reported $0 would now show $50 of $5000 (1%), and $50 of $5500 total. The difference in reporting would be +$45 since it now shows $50 open balances instead of $5. Then the next month, the balance would decrease by $45, going back to $5.

Does the change in balance impact scoring, or does it not matter as long as the overall percentage is still the same 1%?

There is no need to "alternate". Just let the higher limit card report and PIF the other one. You're needlessly complicating things by trying to alternate cards reporting. If the smaller card is a "keeper" card then I would work on getting its limit up by heavy usage combined with PIF multiple times per month.

Re: Utilization: Does balance matter, or only percentage?

seruby — Fri, 12 Jun 2015 16:21:33 GMT

Ok cool. I'll do it that way.

Re: Utilization: Does balance matter, or only percentage?

Anonymous — Fri, 12 Jun 2015 16:25:44 GMT

Good advice, Norman.

Re: Utilization: Does balance matter, or only percentage?

Bpearl2010 — Fri, 12 Jun 2015 17:09:14 GMT

Thank you Norman for great advise. I was wonder the same thing that...