I just got approved for the PRG Amex. It will be my first charge card and I currently have 5 credit cards. I have heard that charge card balances do not factor into your overall credit utilization %. I wanted to know if this was true wouldn't it be technically better to charge everything on a charge charge and very little on your credit cards since a low credit utilization will help your score? I always pay in full on time so I was just wondering if it would help charging most if not all charges on a charge card.
OP,
Please refrain from posting duplicate threads across multiple boards. Your duplicate threads have been deleted.
Lexie, myFICO Moderator
@MT936 wrote:
I just got approved for the PRG Amex. It will be my first charge card and I currently have 5 credit cards. I have heard that charge card balances do not factor into your overall credit utilization %. I wanted to know if this was true wouldn't it be technically better to charge everything on a charge charge and very little on your credit cards since a low credit utilization will help your score? I always pay in full on time so I was just wondering if it would help charging most if not all charges on a charge card.
If you are paying in full, you should be able to effectively manage your utilization regardless of the effects of a charge card by simply paying things off/down before the statement cuts. When you aren't paying interest and carrying balances, purchases should go to the cards with highest reward values.
