Best CC usage strategy?

[bs6054]

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@SnackTrader wrote:

Anecdotal evidence on these forums has shown that charging as much as you want during a statement period, paying all but one card off to $0 before the statement, and letting the remaining card report between 1% and 9% utilization has worked for the majority of lenders during app sprees.

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Yes, but just be careful with places like US Bank, which report the then current balance at the end of each month, regardless of when the statement closes.

[loviedovie]

Thank you Snack Trader!

I really appreciate this response and the others in this thread because I never realized the difference between CARRYING and REPORTING a balance, and that one might not have to carry it in order for it to just be reported as building credit. 

You learn something new every day on this site!

Incidentally, for anyone who is interested in this topic I just heard from my brother that when he was between jobs two years ago he lived off of his amex for several months running up a 10k balance, which he paid down greadually over the following 18 months or so. After about 10 months of him paying the high balance down slowly, AMEX sent him a letter saying that they were lowering his interest rate AND increasing his CL just because of the way he was so responsibly managing the debt.  He hadn't even asked fo these things!

[loviedovie]

Thank you Revelate!

I didn't realize that different lenders look for different things. I will probably follow Citi's lead since they have been my bank for 15 years and with the little amount of credit I have it helps to apply for a card from an institution that knows how high my checking account balance always is. I feel I will have better odds there. 

Also fantastic advice to be consistent in whatever patterns I choose.

Thank you! Thank you!

[bs6054]

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@loviedovie wrote:

T

Incidentally, for anyone who is interested in this topic I just heard from my brother that when he was between jobs two years ago he lived off of his amex for several months running up a 10k balance, which he paid down greadually over the following 18 months or so. After about 10 months of him paying the high balance down slowly, AMEX sent him a letter saying that they were lowering his interest rate AND increasing his CL just because of the way he was so responsibly managing the debt.  He hadn't even asked fo these things!

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But this is certainly a YMMV case!   AMEX can also get "nervous" about long-term balances and decrease CLs.  But good treatment for your brother.