Utilization question- 19 cent balance too low?

Anonymous · ‎02-05-2015

Hi everyone,

I'm rebuilding and have 2 new revolvers (opened in mid December). Both are Cap 1 accounts- one is secured with a $501 CL and the other is QS1 with a $500.00 CL (credit steps).

I've fed plenty through both of them. The due date is 2/7 and the statement cuts shortly after.

I have a zero balance on the secured one and $25.19 on the other one. The thing is, I signed up for autopay and the minimum payment is $25. Therefore, my balance will be 19 cents unless I make another purchase. I understand the concept of letting a low balance show on the one card with zero on the other, but is 19 cents too low for my score to optimize from utilization?

I appreciate your thoughts. As an aside, I also know i should have 3 bank cards. I figured my scores could climb up some before I pick up another one and hopefully can get a better initial CL as well as a card that I want more. Also, I'll have a couple inq. fall off in May and June, leaving me around 2 or 3 depending on the bureau.

Thanks.

Anonymous · ‎02-05-2015

@Anonymous wrote:
Hi everyone,

I'm rebuilding and have 2 new revolvers (opened in mid December). Both are Cap 1 accounts- one is secured with a $501 CL and the other is QS1 with a $500.00 CL (credit steps).

I've fed plenty through both of them. The due date is 2/7 and the statement cuts shortly after.

I have a zero balance on the secured one and $25.19 on the other one. The thing is, I signed up for autopay and the minimum payment is $25. Therefore, my balance will be 19 cents unless I make another purchase. I understand the concept of letting a low balance show on the one card with zero on the other, but is 19 cents too low for my score to optimize from utilization?

I appreciate your thoughts. As an aside, I also know i should have 3 bank cards. I figured my scores could climb up some before I pick up another one and hopefully can get a better initial CL as well as a card that I want more. Also, I'll have a couple inq. fall off in May and June, leaving me around 2 or 3 depending on the bureau.

Thanks.

They'll probably report the 19 cents as a $0 balance so it is probably too low. I would keep at least $5 if you're looking to optimize your score that month

Anonymous · ‎02-05-2015

Thanks, Irish. That was my concern. Honestly I didn't even think of how that was going to land post auto payment.

Looks like Cap 1 will let you cancel a particular payment without cancelling the series if it isn't too late. I went in, cancelled it, and then submitted a payment of $20.19.

Anonymous · ‎02-05-2015

I believe 20.19 is less than the minimum payment... I'd pay the whoLe thing off. Leaving a card to report a balance is just a trick to maximize your score while apping. I don't think there are any long term benefits.

Anonymous · ‎02-05-2015

you really dont need to optimize this month if you arent applying for anything. Util has no memory, so any points you lose for "no recent use of revolving credit" you will get back next month. If you are optimizing for the motivation that comes from seeing the score, make a purchase.

Anonymous · ‎02-05-2015

It had a balance on the original statement and I've run more than the balance through in the interim (charged and made payments along the way). It has 0% interest until September, too.

I figured the first statement would have cut about a month out and they caught me by surprise because ti came quickly. Initial statement balance was $346.64 with minimum due of $25.00. It's going to be down to $5.00, so I've paid over $300. I didn't paint a complete picture, initially. Sorry.

Honestly, I haven't had revolvers in years and just want to play a game with the util. because it's new to me.

Anonymous · ‎02-05-2015

.19 cent might as well pay it

Anonymous · ‎02-05-2015

@Anonymous wrote:
.19 cent might as well pay it

However Discover will credit up to $1.99.

Anonymous · ‎02-05-2015

@Anonymous wrote:
@Anonymous wrote:
.19 cent might as well pay it
However Discover will credit up to $1.99.

Wow. You mean if your balance is only $1.99 or less when the statement cuts then you won't owe that amount and Discover takes care of it?

Anonymous · ‎02-05-2015

@Anonymous wrote:
@Anonymous wrote:
.19 cent might as well pay it
However Discover will credit up to $1.99.

And people ask what is so great about DISC customer service. That would be like an extra 1.5 percent cash back for me lol