Credit utilization queston.

[Anonymous]

What is a good UTIL % when applying for another credit card. Is it good to have zero balance on other cards when applying for another card?

Thanks for the help. 

[Anonymous]

Zero balance on other cards except one reporting 1% -9% is best.

[Anonymous]

Also keep in mind just because it is paid off does not mean it has been reported to the bureau's it has paid off. my Cabelas is lagging from June on TU.

[Anonymous]

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@Anonymous wrote:

Zero balance on other cards except one reporting 1% -9% is best.

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What if i only have one card. I'm 18 so I only have one retail store card with a balance on $130 and a $585 CL. I want to apply for another credit card, is it good to have no balance when applying for another one or should I just keep a balance of $15-$20 when applying?

[Anonymous]

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@Anonymous wrote:
Also keep in mind just because it is paid off does not mean it has been reported to the bureau's it has paid off. my Cabelas is lagging from June on TU.

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I called the company and they told me that they report every month. 

[_NERD]

Have you tried the prequal tools? Capital One, Citi, Discover, Amex and bunch of other companies have them.

[Anonymous]

I believe you have to be 21 to get pre quals.

[Anonymous]

Capital One requires you to be age 21 when getting pre-quals as stated on their website.  I couldn't find any other lenders who state that requirement, however that is not to say that it doesn't exist.

Since you only have one card with a $585 limit, pay down that card until you're under $52.65.  This utilization percentage will help you in two ways: your score will rise and it makes you look good because you theoretically have $585 available but you've only tied-up ~9% of it. Having $0 balance on your only tradeline will not help you.  I am not experienced enough to say with certainty that it will hurt you but it definitely won't help you.

Once you get additional cards, be careful not to rise above the 9% mark when the lender reports to the bureaus (generally on or a few days after your statement cuts, but be careful, some lenders report more than once per statement cycle). 

I have a spreadsheet with all my cards in it that I use to track the age, utilization (both individual and total), balances, etc.  You might consider doing the same. 

Dustin

[Anonymous]

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@Anonymous wrote:

Capital One requires you to be age 21 when getting pre-quals as stated on their website.  I couldn't find any other lenders who state that requirement, however that is not to say that it doesn't exist.

Since you only have one card with a $585 limit, pay down that card until you're under $52.65.  This utilization percentage will help you in two ways: your score will rise and it makes you look good because you theoretically have $585 available but you've only tied-up ~9% of it. Having $0 balance on your only tradeline will not help you.  I am not experienced enough to say with certainty that it will hurt you but it definitely won't help you.

Once you get additional cards, be careful not to rise above the 9% mark when the lender reports to the bureaus (generally on or a few days after your statement cuts, but be careful, some lenders report more than once per statement cycle). 

I have a spreadsheet with all my cards in it that I use to track the age, utilization (both individual and total), balances, etc.  You might consider doing the same. 

Dustin

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I think you do have to be 21 for all the pre-qual sites because I tried AMEX, Citi, Chase and they didn't have any pre-quals, but when i cheked Discover only one card came up and it was the green cash back card but I'm not sure if that's a pre-qual or an advertised card. So you don't recommend paying off the card? i was going to do it tomorrow but if you think it's better to have a small balance I'll probably leave it like that. BTW the $585 CL was given to me this month, I had a $450 CL at first and this month i got the auto CLI to $585 and it's yet to be reported. I want to apply for another card but I'm not which one to apply for. My Scores are EQ: 634 TU:627 and EX:641. AAoA is about 7 months, I've NEVER made a late payment on anything and I have 2 inquiries on each bureau and I also have a loan for $1800 and the payments are withdrawn automatically from my bank account. What cards do you guys think i have good approval odds for? 

[Anonymous]

Ignore anything to do with online Discover pre-qualification. It is known to be worthless. There was a member here who put in 100% fake information and got a pre-qual from them.

With only one card, you're not likely to get any pre qualifications. You'd need a year or two or three of history beforehand.

No, I don't recommend you pay the card down to zero but you're welcome to pay it down to something very small, just make sure you're between 1 and 9 percent.