@FicoGuy2019 wrote:Are you all leaving any balances on your cards or PIF and does it matter to NFCU in terms of getting a 2nd card at 91/3? I've used 98% of my 10k sl that cuts next week. Should I PIF or leave a small balance?
Using 98% of your credit limit means that you're in a maxed out condition which is defined as over 88.9% of your credit limit. If I were in your place, I would pay the balance down to about 80% utilization before the statement cuts, then pay off the balance entirely after statement cut if you can afford to do so.
Here's why. If you always pay off the balance before statement cut only Navy will know your activity on the account. However, if you allow a large balance (below 88.9% of limit) to report to the credit bureaus, your other creditors can see the "highest balance" established on your account and see that you've also paid off that balance; thus demonstrating to them that you can manage your credit.
Personally, I allowed a brand new Navy account that I opened in January 2019 to report with 81 percent utilization in the first month although I could have easily paid it down before the statement cut. But to me it was more important to establish a solid "Highest Balance" for the account on my credit report, so that any other creditor reviewing my reports would see that I can handle high limits responsibly. I temporarily lost about some FICO points for crossing 3 individual utilization thresholds but I regained those points when I paid the balance down and the account was updated with the credit bureaus. Navy never freaked out when that balance reported; in fact I could have gotten either a CLI or another card after 91/3 but I declined because I'm currently gardening and I have larger plans in the next few months.
To me the insistence on paying in full before statement cut and AZEO are the two most wrongheaded bits of advice dispensed in these forums. I practice neither and if you look at my scores and available credit lines I don't think I'm doing badly.
