Advice for utilization

[Jungook]

So when I activated my Discover card I asked the CR lady when my statement reports and when the payments are due. She said Discover will report to the bureaus on the 2nd of each month and payments are due on the 5th of each month.

1. What is the percentage of utilzation I should be aiming for to improve my credit to its fullest? (1%, 3%, 7%???)

2. The method of getting the most utilization and least amount of interest would be to make a payment before the 2nd, let it report, and then PIF before the 5th correct?

[azguy13]

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@Jungook wrote:

So when I activated my Discover card I asked the CR lady when my statement reports and when the payments are due. She said Discover will report to the bureaus on the 2nd of each month and payments are due on the 5th of each month.

1. What is the percentage of utilzation I should be aiming for to improve my credit to its fullest? (1%, 3%, 7%???)

2. The method of getting the most utilization and least amount of interest would be to make a payment before the 2nd, let it report, and then PIF before the 5th correct?

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For the sake of your CS, it is best to let 1%-9% report. I always rotate my cards on what reports based on any SP auto CLIs I am trying to get. 

Your idea of paying the least amount of interest seems correct. I think with chase I have a 22 day grace period or something along those lines where if I pay it, no interest will be charged. Come to think of it, I think thats how most of the cards are now. Anyways, I will charge right before the statement closes and CRAs are updated. Once the statement is cut, I PIF and I do not pay any interest at all. 

[Jungook]

How will I know that the CRA and statements have been "cut"?

[azguy13]

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@Jungook wrote:

How will I know that the CRA and statements have been "cut"?

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I just go off my statement due date. The CRAs will be updated sometime around that period. You can also send a secure message or call and ask. I do not have discover so I cannot speak for them. 

[Walt_K]

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@Jungook wrote:

How will I know that the CRA and statements have been "cut"?

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The easiest way to think about it is whatever is on your bill is what is getting reported.  So you time your payment so that it posts before your bill is generated.  That's how it works for most lenders.  There are some reports of Discover doing mid-cycle reporting.  I don't have a Discover card so I can't really comment on that.