Credit Card Utilization

[Anonymous]

Hello All,

I have 2 credit cards (one used for backup only) and I use it whenever I can, I only use cash when CC is not accepted, for me that is practical and I get miles, I pay may CC in full each month and never paid late. Because of that my CC utilization hovers around 70% and that is hurting my credit pretty bad. What can can be done in this situation? I see applying for a bunch of credit cards (and not using them) to increase credit or using a debit card/cash as very poor "solutions". Any alternatives? 

[Anonymous]

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@Anonymous wrote:

Hello All,

I have 2 credit cards (one used for backup only) and I use it whenever I can, I only use cash when CC is not accepted, for me that is practical and I get miles, I pay may CC in full each month and never paid late. Because of that my CC utilization hovers around 70% and that is hurting my credit pretty bad. What can can be done in this situation? I see applying for a bunch of credit cards (and not using them) to increase credit or using a debit card/cash as very poor "solutions". Any alternatives? 

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Alternatives:

1. Calling CC company and ask for a credit line increase

2. Paying off most of the balance before the statement cut. That way the high balance is reported and a small balance is reported instead (0 balance is also bad for credit score).

3. Applying for ONE more credit card. 3 credit cards is the optimal number for credit scores anyways. having 2 credit card cut your score short a little bit.

[Anonymous]

If you are able to PIF (Which is awesome!) I think the trick you are looking for is you will want to pay your bill a few days before your statement cuts, that way the balance reported is zero, or close to it. If you really want to micromanage your scores, leave a small balance to report to show 1-9% UTIL, this is prime for scoring but only really useful when seeking new credit.

[Anonymous]

Credit card issuers report to the creit bureaus about the owed balance of customers on a certain date every month, which may not coincide with your due date. Suppose, your CC issuer's date of reporting to the credit bureaus is 15th of every month and your due daye of payment is 18th. EVen if you pay on 16th, the CC issuer will report the due amount to the credit bureaus. Therefor, the solution is to call the issuer and try knowing the date in which they send accounts receivable tape to the credit bureaus. Try it and let us know. I think it may work for you as you are an avid user of CC.

[Anonymous]

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@Anonymous wrote:

Hello All,

I have 2 credit cards (one used for backup only) and I use it whenever I can, I only use cash when CC is not accepted, for me that is practical and I get miles, I pay may CC in full each month and never paid late. Because of that my CC utilization hovers around 70% and that is hurting my credit pretty bad. What can can be done in this situation? I see applying for a bunch of credit cards (and not using them) to increase credit or using a debit card/cash as very poor "solutions". Any alternatives? 

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Before I joined the forum I did not understand about utilization. I charged up my three cards to the max then paid them off monthly. When that was reported to the credit bureaus it appeared that I was maxed out with my credit limit. So after joining here, I paid attention when my accounts closed  for the month and when they reported. My scores shot up to the high 700's. I was amazed. It was then I expanded my portfolio. You get great limits and apr with high scores. Mine are lower now after six months and 17 new accounts, but I am gardening and plan to lower my utilization even more. I predict that the scores will steadily go up over the next six months of good management. Just my take  and my experience. Good luck to you! You can do it! You don't need many cards to make it happen either!

[Anonymous]

Companies will generally report (except for Amex because they take 2 months) 3 to 5 days after your payment due date or the statement closing date. Pay the cards before then and you'll lower your utilization.

[Anonymous]

Thanks all for the help!!