cancel
Showing results for 
Search instead for 
Did you mean: 

Question about Usage and Utilization

TsumiBakudan
New Member

Question about Usage and Utilization

Hi All. New here, been reading recent topics and searched a few older ones. 
Trying to be better about making my credit cards work for me. I am carrying some debt on a few cards, Taxes one year due to a W-4 error. A couple others due to taking a pay decrease and not supplementing my income for a couple of years hoping for a promotion. 

 

Anyway, I have about 6 cards at a $0 balance and 4 cards at 80% utilization. 
My question is, if I use my empty cards once per month and pay off before statements generate, would I have a better chance at CLI's? the cards are with Amex, Chase and Discover. 

 

Or, would it not matter their usage due to the high utilization cards? 

Message 1 of 8
7 REPLIES 7
CreditSweeper
Established Contributor

Re: Question about Usage and Utilization

That's a somewhat loaded question. Some lenders, like Discover like to see use before they give a CLI. AMEX, on the other hand, doesn't seem to be swayed by use, or lack thereof. 

All that said, the high utilization on your 4 cards (and probably a bit high overall), are going to throw you some roadblocks. Generally speaking, lenders don't like prolonged high utilization. 

Personal Credit -
AMEX: Platinum, Gold, Green, Blue Cash Preferred
PNC: Cash Rewards, Points
BOA: Cash Rewards
NFCU: Flagship Rewards, Cash Rewards, CLOC
PSECU: Founders
BB&T: Spectrum Cash Rewards
CapOne: Quicksilver
Discover: IT Chrome, IT
Synchrony: PayPal 2%, PayPal Credit
Barclays: Uber
PenFed: Power Cash Rewards, Platinum Rewards
Alliant: Visa Signature
Goldman Sachs: Apple Card
BBVA: Clear Points
FNBO: Rewards
Store Cards: Target, Macy’s



Business Credit-
AMEX: Delta Gold, Amazon Prime, Simply Cash Plus
PNC: Visa Business
Synchrony: Lowes
Message 2 of 8
TsumiBakudan
New Member

Re: Question about Usage and Utilization

Thanks for the reply. I figured as much. I have been fortunate that 2 of the cards are with Citi and they have been giving me a yearly CLI on the cards, so the utlization is going down 2 fold (payments and CLI). 

I just want to maximize my other cards, but I don't want to cycle them every month if it won't really benefit. I don't have too many auto-payments either to put on them. 

Message 3 of 8
Obscure-Expert
Valued Contributor

Re: Question about Usage and Utilization

Well, since they're all automated at this point there's different things you can do.

 

Absolutely not using cards gives the computer little to no reason to offer a CLI based on lack of spend.  So, I would at least do something like Amazon reloads for $5/mo and turn around and pay it off or setup autopay for the balance on those cards.

 

Chase is the tougher one to deal with as every CLI is a HP vs the other 2 which are SP's.  

 

The high UTIL fortunately won't leave a lasting impact once it's paid off.  The more cards you can bring to a $0 balance the better but, getting under some lower thresholds will bring some additional points to your scores.  

 

Ideally if you could list out the CC's with bank/CL/Use/%/APR maybe there's a solution to be had in finessing the #'s and saving some cash on the interest.  There might be a way to shuffle some of the debt around a bit to make it easier to tackle.  Another potential option is PL's with lenders you're already with that bring the rates down to 6-9% instead of 20%+.  

500K+ TCL / 800+ FCOs
Message 4 of 8
TsumiBakudan
New Member

Re: Question about Usage and Utilization

I hadn't thought of the Amazon reloads. I could just do that to keep them being used. I have a plan to tackle the cards with higher utilization. I am about to pay off a PL that will allow me to put that $300/month payment towards the cards, plus some end of year bonuses and with tax return, I'm about to do some decent damage. Just wanted to maximize my $0 cards, so the amazon auto loads would be ideal. 

Message 5 of 8
Obscure-Expert
Valued Contributor

Re: Question about Usage and Utilization

Sounds like you have a plan and new option to keep things active.

 

s-l300

500K+ TCL / 800+ FCOs
Message 6 of 8
M_Smart007
Epic Contributor

Re: Question about Usage and Utilization

 

@TsumiBakudan   .. Welcome To myFICO Forums!Smiley Happy

 




Message 7 of 8
M_Smart007
Epic Contributor

Re: Question about Usage and Utilization


@TsumiBakudan wrote:

I hadn't thought of the Amazon reloads. I could just do that to keep them being used. I have a plan to tackle the cards with higher utilization. I am about to pay off a PL that will allow me to put that $300/month payment towards the cards, plus some end of year bonuses and with tax return, I'm about to do some decent damage. Just wanted to maximize my $0 cards, so the amazon auto loads would be ideal. 


I have used Amazon & StarbucksSmiley Happy

try to get your individual Utilization below 28.9% ....   go a little lower if you think they will tack on interest. GL2U

 

 




Message 8 of 8
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.