You've got it, with the exception of one thing - many on this forum (I am included based on my personal experiences with my score) think that only 1 card should report a balance, not each of them. So when I try to maximize my score, I let one card report a 1% limit, and get all the others to $0 for the statement closing date.
Also - I only maximize utilization in the months where I am applying for new credit. I feel no need to play this game if no one is going to be looking at my reports, but that's completely up to you!
Congrats on your successes so far, and Good Luck moving forward! Stick around and join the discussions!
Also - I only maximize utilization in the months where I am applying for new credit. I feel no need to play this game if no one is going to be looking at my reports, but that's completely up to you!
Congrats on your successes so far, and Good Luck moving forward! Stick around and join the discussions!
Congrats, welcome to the forum,
+1 @SnackTrader
Also, I would give myself a few more days to pay before the statement cut,
just in case they do not post your payment before the cutoff, and maybe get a maxed
out card reported, (speaking from experience) best of luck to you!!
Great questions.
I have applied for credit exactly 5 times in the last 12 and a half months. Once in June, 3 times in December, and once last month. That means over another 9 months of the year no one was looking at my credit score or my credit report. Since FICO scoring has no "memory" of utilization, my utilization in those 9 months meant nothing. So high or low, worrying about when and how to pay down the cards (except PIF by due date) wasn't going to do me any good. I just play the float for a few extra days instead.
Now, in those 3 months, you better bet I was checking my reports all the time and making sure my balances were where they needed to be. But I guess here's the kicker for me - I have over $40,000 in credit lines, and put approximately $2k-$4k on my cards every month and then pay in full. So, I never have to worry about utilization as it is. I also never come close to the CL on any individual card because I spread the spending around to optimize rewards, so that helps too. For some people with low limit cards, or people using one card for everything, utilization management is definitely more of an issue on an ongoing basis so that lenders don't get worried about maxed out credit lines, or high total utilization. But for someone like me, who rarely approaches 10% utilization, there is little need to manage utilization except when applying for new credit.
I have applied for credit exactly 5 times in the last 12 and a half months. Once in June, 3 times in December, and once last month. That means over another 9 months of the year no one was looking at my credit score or my credit report. Since FICO scoring has no "memory" of utilization, my utilization in those 9 months meant nothing. So high or low, worrying about when and how to pay down the cards (except PIF by due date) wasn't going to do me any good. I just play the float for a few extra days instead.
Now, in those 3 months, you better bet I was checking my reports all the time and making sure my balances were where they needed to be. But I guess here's the kicker for me - I have over $40,000 in credit lines, and put approximately $2k-$4k on my cards every month and then pay in full. So, I never have to worry about utilization as it is. I also never come close to the CL on any individual card because I spread the spending around to optimize rewards, so that helps too. For some people with low limit cards, or people using one card for everything, utilization management is definitely more of an issue on an ongoing basis so that lenders don't get worried about maxed out credit lines, or high total utilization. But for someone like me, who rarely approaches 10% utilization, there is little need to manage utilization except when applying for new credit.
No memory means that your utilization is only taken into account at a point-in-time. What your utilization was 12 months ago, 6 months ago, or even last month has no impact on your score.
The only thing that matters for utilization is the most recent balance and the most recent limit reported to the credit bureaus. So if my utilization reports at 80% today, I can fix that by paying the cards down to $0 before the next statement date. Then, when the bureaus update, it is highly likely that my score would increase.
The only thing that matters for utilization is the most recent balance and the most recent limit reported to the credit bureaus. So if my utilization reports at 80% today, I can fix that by paying the cards down to $0 before the next statement date. Then, when the bureaus update, it is highly likely that my score would increase.