I HAVE A QUESTION ABOUT UTILIATION?

[bsal]

Here is my question and maybe you can help me on this, i'm rebuilding my credit and i just got approved for a macys store department credit card for a 100.00, can somebody advice me what i need to spend to show up on my report to make it be 10% or under, and how does that utilation work can i get some help on this?

[Anonymous]

10% of $100 is $10. If you want to spend more you can:

1. Prepay card(ie prepay $200 then make $210 purchase)

2. Pay before statement(charge $50 then pay it off\ most off when you get home)

[marty56]

For TU and EQ you want to have reported 9% or less total util.  I dont know how high of a single card util before those 2 CRA's smack you.  On EX total util needs to be 9% or less but each card also needs to be 9% or less.

You are safe to charge any amount under your CL as long as only $9 or less actually reports.  Also the # of cards reporting a balance can affect your score.  1 works best for me but other say less then half of your total number of CC cards.

[bsal]

I'M SORRY I'M NOT UNDERSTANDING , ARE U SAYING IF I SPEND  50 DOLLARS ON A 100 LIMIT CC THAT DAY, I SHOULD PAY IT OFF THAT DAY? OR PAY 40 DOLLARS THAT DAY AND WAIT FOR MY STATEMENT TO **bleep** TO SHOW A 10 DOLLA BAL SO I CAN BE AT 10% UTILIATION? I'M LOST HELP ME IF I'M WRONG

[TangMeister]

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@bsal wrote:
I'M SORRY I'M NOT UNDERSTANDING , ARE U SAYING IF I SPEND  50 DOLLARS ON A 100 LIMIT CC THAT DAY, I SHOULD PAY IT OFF THAT DAY? OR PAY 40 DOLLARS THAT DAY AND WAIT FOR MY STATEMENT TO **bleep** TO SHOW A 10 DOLLA BAL SO I CAN BE AT 10% UTILIATION? I'M LOST HELP ME IF I'M WRONG

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 This is what you should do, as bolded above.  As stated, it really should report below 9%...not 10%.  So pay it down to $9 or less, let the statement generate, then pay off the rest afterward. 

Now, mind you, that's assuming they report to the credit bureaus after the statement generates, and not at the end of the month...which happens for some cards.  You'll have to see how that goes, or someone on here might help you with that particular credit card's reporting behavior.  Regardless, only let it report $9 or less.  Good luck! 

Message Edited by TangMeister on 11-23-2008 01:02 PM