Am I using my credit cards wisely?

[TheRealJosh94]

I've been trying to think this through, and I don't know what I'm doing is working. I'm trying to garden my cards until next summer so that I can apply to an Amex card. I have this strategy, but I have absolutely no idea if its working with me, or "hurting" me. First off, my plan was to keep my utl. as low as possible. What that means is with my 2 current cards that I have one card, for example, my capital one, I will pay off my entire balance every month and wait a couple of days so that it reports a $0 balance. I'll use that card after it gets reported, and pay off the balance that I've used at the end of the month, etc. While my other card, with a larger balance, I will pay it off early, and use it again to pay for gas, etc. so that when the statement pulls its only about 50-100$. I'm thinking that by using this strategy would work, but I haven't seen a big gain in my score numbers.

[djc1puno]

you are right! leave one card to report a small balance for maximum scoring! keep gardening...you're doing just fine...

[myjourney]

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@TheRealJosh94 wrote:
I've been trying to think this through, and I don't know what I'm doing is working. I'm trying to garden my cards until next summer so that I can apply to an Amex card. I have this strategy, but I have absolutely no idea if its working with me, or "hurting" me. First off, my plan was to keep my utl. as low as possible. What that means is with my 2 current cards that I have one card, for example, my capital one, I will pay off my entire balance every month and wait a couple of days so that it reports a $0 balance. I'll use that card after it gets reported, and pay off the balance that I've used at the end of the month, etc. While my other card, with a larger balance, I will pay it off early, and use it again to pay for gas, etc. so that when the statement pulls its only about 50-100$. I'm thinking that by using this strategy would work, but I haven't seen a big gain in my score numbers.

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How long have you had both cards?

Also alternate which one reports a balance other than that you're good on the plan.

The reason I asked how long was if you just got them it will take some time for your scores to recover before you see gain

[SnackTrader]

You're doing great by building your history! Keep it up!

You don't need to keep your Util so low unless you are applying for new credit or CLIs. Your credit score has no memory of past Util in the calculation, just current Util. Feel free to let whatever report, but make sure to PIF before due date so that you avoid interest. Then, next summer when you are ready to apply for new cards you can start focusing on Util about 2 months in advance of applications and that will be enough.

Personally, I find constantly focusing on reported Utilization a waste of time. I just always make sure I only spend what I can pay off, and PIF by the due date. Then, when it gets close to application time I fix my Util and I'm good to go!