Credit Cards and Balance Reporting

[OCONUS]

What is the rule of thumb on balance reporting?

I get confused by the diversity of advice we recieve. 

As a case, I now have around 11 cards. I usually run a usage of around 70% of CL on each of four cards and then pay them off before the statement closes.  Other five , I run a minimal usage of couple hundruds.  All cards end up reporting AZEO where one is reporting a balance of $600. 

Am i doing it wrong?

[Slabenstein]

The rule of thumb is going to depend on what you're trying to do.  If you're trying to do AZEO, then it sounds like you're doing it right (depending on the CL of the card you're letting report $600).

[OCONUS]

---

@Slabenstein wrote:

The rule of thumb is going to depend on what you're trying to do.  If you're trying to do AZEO, then it sounds like you're doing it right (depending on the CL of the card you're letting report $600).

---

The card with balance has a 10K CL.

My goal is to establish a history that shows that I have usage and I can manage the CL. I am gussing a continued pattern of AZEO may push me into the trap of "excessive available credit."

[Slabenstein]

If you're wanting to show usage to lenders, then, yeah, AZEO wouldn't really be the way to go.  In that case, you would probably be wanting to do something like paying half of a card's balance before statement cut, half after.  You could also alternate between doing that one month and AZEO the next on different cards to show payoff, too.  Really, how much balance you let report and how often depends on what kind of usage and CL management you think the lenders you're targeting want to see.

[Kforce]

---

---

As @Slabenstein wrote:

"The rule of thumb is going to depend on what you're trying to do".

From your second post:

" My goal is to establish a history that shows that I have usage and I can manage

the CL. I am guessing a continued pattern of AZEO may push me into the trap

of (excessive available credit.) "

1)  Each issuer can see your use and payments with them,

     no mater how much or little you use your card.

2)  70% of a CL is larger spend than most cards see each month.

3)   Spend is often way down the list in importance for getting a high CL.

       Issuer, good payment history, time and income are usually higher up the list.

My personal philosophy

Use each card how it best benefits your spend, rewards, insurance, etc.

Never put spend on a card just to look good to an issuer.

You have a lot of good CU cards, most CU's value history and income the most.

Have a local CU that gave me $60,000 CL on a card that never had more

than $100 spend each year. 

 I vote to use each card as they fit your needs.

Pay as often and much as you like, and never miss a payment.

Only practice Azeo for fun or if needed for a new loan.

With 70% utilization if worried about scores some payment reduction might be

a good thing, Azeo maybe a bit much.

 I pay current balance on each card two times every month.

Keeps utilization in check with out micro managing or true "AZEO".

Lets other issuers see some of my spend with out killing utilization on

heavy spend cards.  My compromise payment plan.  For me it is just

simplicity and safety, not interested in CL growth.

[SouthJamaica]

---

@OCONUS wrote:

What is the rule of thumb on balance reporting?

I get confused by the diversity of advice we recieve. 

As a case, I now have around 11 cards. I usually run a usage of around 70% of CL on each of four cards and then pay them off before the statement closes.  Other five , I run a minimal usage of couple hundruds.  All cards end up reporting AZEO where one is reporting a balance of $600. 

Am i doing it wrong?

---

1. All cards report the balance as of their reporting day; for most, but not all, cards, that's the statement balance.

2. To optimize your scores, it's best to have most of your cards reporting zero balances, with the others reporting small balances.

[SouthJamaica]

---

@OCONUS wrote:

---

@Slabenstein wrote:

The rule of thumb is going to depend on what you're trying to do.  If you're trying to do AZEO, then it sounds like you're doing it right (depending on the CL of the card you're letting report $600).

---

The card with balance has a 10K CL.

My goal is to establish a history that shows that I have usage and I can manage the CL. I am gussing a continued pattern of AZEO may push me into the trap of "excessive available credit."

---

Your reported balance does not show usage. They can tell what the usage is without looking at the reported balance.

[OCONUS]

Thank you so much for your feedback everyone. I now understand it better.

[SouthJamaica]

---

@OCONUS wrote:

What is the rule of thumb on balance reporting?

I get confused by the diversity of advice we recieve. 

As a case, I now have around 11 cards. I usually run a usage of around 70% of CL on each of four cards and then pay them off before the statement closes.  Other five , I run a minimal usage of couple hundruds.  All cards end up reporting AZEO where one is reporting a balance of $600. 

Am i doing it wrong?

---

If all of your cards but one are reporting zero balances, and one of your cards is reporting a balance of 6% of the limit, you're doing it in the most optimal way possible.

[OCONUS]

---

@SouthJamaica wrote:

---

@OCONUS wrote:

What is the rule of thumb on balance reporting?

I get confused by the diversity of advice we recieve. 

As a case, I now have around 11 cards. I usually run a usage of around 70% of CL on each of four cards and then pay them off before the statement closes.  Other five , I run a minimal usage of couple hundruds.  All cards end up reporting AZEO where one is reporting a balance of $600. 

Am i doing it wrong?

---

If all of your cards but one are reporting zero balances, and one of your cards is reporting a balance of 6% of the limit, you're doing it in the most optimal way possible.

---

Thank you again. This is exactly what I have been doing so far but I had worries that I may not be doing it right.

My income is 300K, hence I did not rely too much on credit. I then realized that I was wrong.

My goal is to show usage, and an ability to responsibly handing large CL, while maintaining  prime FICO scores. all this feedback will help me grow along the way.