Utilization Rate

[Thunderseven]

Question - I've paid all of my cards off, but still want to show that I am utilizing the cards.  If I make small purchases throughout the month and pay them off, should I wait until they reflect on the next statement before paying, or does it matter?

[SouthJamaica]

---

@Thunderseven wrote:

Question - I've paid all of my cards off, but still want to show that I am utilizing the cards.  If I make small purchases throughout the month and pay them off, should I wait until they reflect on the next statement before paying, or does it matter?

---

It doesn't matter if you pay it before the statement date. They can still tell that the account was active, even though the reported balance is zero.

[HeavenOhio]

Credit reports include the "date of last payment." That's enough to make it clear that the card was active.

For scoring purposes, you might want to let one card's statement cut with a small balance. That's up to you. All cards reporting zero will ding you.

[Anonymous]

Ideally the scoring model would like to see some usage vs what looks like dormancy

So allowing a token balance to report, Statement wise shows an outstanding 'debt management' rate of say 2-9% vs a constant Zero usage rate

And simply pay the balance the following day, no fuss no muss the snapshot takes the just once a month.

Buy gas or a few groceries just prior to Statement close then pay off as soon as you like AFTER the snapshot
* Note...only ONE card needs to show a balance, with the rest reporting Zero balances for maximum effect...it's ONE card with a balance and that ratio being very well managed % wise