@ocj wrote:That is incredible. I have been reading the forums every few months.
I just recently decided to try and get my limits higher. Thanks for all the advice i will definitely give my credit cards a higher priority in the next few months .
What i was doing with my chase cards was using 500 aand then paying it off the next day. I would send maybe 8 payments a month but by what I'm reading this is bad. I was mostly trying to avoid having high utilization on my credit report.
Just to clarify, paying accounts off early in-itself is not bad. Many of us do that. Paying 8x a month would probably be excessive to 95% of our group, I would guess. Maybe once or twice per card per month. I mainly do it to not only minimize utilization on heavier use months but also just to make sure I'm making my minimum payments early before the due dates. I do set up Autopay for minimum payment but I check all my accounts multiple times per week (Smart phone apps have made that so easy) and decide when I want to make a payment. Right now, I'm actually letting some balances carry over on a new card because I got 0% APR on purchases as an intro offer. It's not costing me anything and it lets the lender see I can handle a balance and make payments.
As discussed, allowing SOME utilization to post monthly is helpful. If you apply for new credit, the lender will see usage and payment of your existing cards more clearly. They want to see that you would likely use their cards regularly; that's how they hope to make their money!
There's a technique called "Azeo" which means All Zero Except One. You'll notice quite a few of our members practice it regularly, but it really only counts when you are preparing to apply for credit and want to give your scores a lift. It adds a little bump to your credit score when you have a small balance report on a single card. (You want it to be no more than 8.9% of your credit limit and lower is better. There's a minimum balance cards will report so no less than about $5 balance. There are several credit-scoring thresholds and the first penalty for utilization begins at 8.9%, although it's a smallish one. They get larger as you hit higher thresholds.)
The main thing to remember about utilization is that it is TEMPORARY. As soon as you pay it down, scores will rebound, all else excluded. It's not like a late payment or other derogatory item that can follow you for years. So healthy usage of your credit limits is nothing to be afraid of if you can afford to do so and you are disciplined about keeping usage under control.
