Optimal utilization

[MacMan313]

im still pretty new to the credit card game. I've been reading online that you want to keep a small balance on only one card. I've read conflicting reports about what that balance is to be. (2-6%, 6-10% under 30%, etc). What is optimal?

Do high balances affect our scores? During the course of the month it isn't unusual for me to charge everything to my discover because of rewards and pay it off before the statement date. This lends itself to be maxed a time or two. Does this affect my relationship with discover?

[Anonymous]

I personally like to use my overall monthly utilization at around 9%. 

As far as you maxing your card out...I don't see why Discover would care. You say yourself that you are paying the full amount every month. 

[takeshi74]

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@MacMan313 wrote:

im still pretty new to the credit card game. I've been reading online that you want to keep a small balance on only one card.

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You don't want to carry a balance.  If optimizing to eke out every possible point (i.e. when applying for new credit, CLI, etc) allow one balance to report at 10% or less.  At other times just keep it under 30%.

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@MacMan313 wrote:

Do high balances affect our scores?

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Utilization is really what matters and balances are part of utilization which falls under Amounts Owed:

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

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@MacMan313 wrote:

Does this affect my relationship with discover?

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They're getting paid, so no.  The importance of relationship is overstated here IMO.  Relationship will not overrule poor credit.