Utilization question....

[Anonymous]

My utilization currently stands at 26.5%(w/o my npsl from amex dont know how that factors in) which im assuming is too high, i plan to pay enough to bring it down to 23 or maybe 20 on friday, my question is since im using my cards everyday purchases mainly should I take the loss in rewards and use cash and make smaller payments until i get my utilization down more, heres another issue i have i have the $300 chase premium if i spend 500 in first 3 months which is by june 1st or so, should i just spend the money(on school) now or should i wait til last minute to do so. Sorry for so many questions but im pretty new to the prime cards and got approved for 3 this year and dont  want to piss them off or scare them(especially chase and amex)

[bichonmom]

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@Anonymous wrote:

My utilization currently stands at 26.5%(w/o my npsl from amex dont know how that factors in) which im assuming is too high, i plan to pay enough to bring it down to 23 or maybe 20 on friday, my question is since im using my cards everyday purchases mainly should I take the loss in rewards and use cash and make smaller payments until i get my utilization down more, heres another issue i have i have the $300 chase premium if i spend 500 in first 3 months which is by june 1st or so, should i just spend the money(on school) now or should i wait til last minute to do so. Sorry for so many questions but im pretty new to the prime cards and got approved for 3 this year and dont  want to piss them off or scare them(especially chase and amex)

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@Anonymous rule of thumb for the best FICO is all cards reporting a 0 bal (not incl the npsl) and only one @ <9%. Your overall util is high, but not terrible. I would do whatever you can to bring your util down to 9%/0.

Whether or not you put your daily expenses on the card for rewards, doesn't really affect your credit. You can just pay the cards more than once a month if you want to spend more than your CL allows. For example, on your 300 chase, you could spend $200 week one, pay in full, then charge another $200 in week 2, pay, etc. That way, you can get your rewards and still keep you balance low. You shouldn't have to spend money on anything you don't need; just pay for what you would normally and use the CC.

If your Amex is new, I'd increase spending on it slowly. My first stmt w/them was under $200 (for about 2 weeks). I'm slowly increasing my spending with them -- mostly places where they give me double points -- so they can learn my spending habits.

Running money through your cards isn't going to scare them as long as you're paying in full. If they soft you and see high util on other CCs, I think that's what's going to cause them concern.

[Anonymous]

so i should start working on my cap1 and discover then? those are most of my utilization being a total of like 2g combined, my amazon is the one i use mainly for rewards but u suppose i could switch to freedom for while to hit premium. As for amex as i mentioned them and chase are the ones im trying to build the best relationship with so i stopped at 102 on my zync this month, will probably build to 300 by april or may hopefully(birthday time so i get to eliminate a few balances)

[bichonmom]

As soon as you can, stop carrying balances. About 6 mos after the last card you got, I would app for a GE card. You might try Walmart, since they give you a free FICO. Or wherever you're likely to do shopping. The good thing about GE is that they are pretty generous with CLIs -- usually every 4 mos. That will help you with your uitl.

When your util is <9% on only one card (Just pay any CCs you have used during the month BEFORE the stmt cuts, and it will report a zero balance to the CRAs.), AND you have a good 6 mos since your last new card, I would look at some local CUs for a CC. CUs tend to be more generous in helping people build or rebuild credit.

Your Cap Ones aren't going anywhere CLI-wise. Their sub-prime cards just don't CLI beyond any step program they may be in. You're going to want 1 or 2 CCs with good CLs in the future. IMO, a CU is the best way to go. I started a year ago w/2 Cap Ones ($300 and $500) and a GE card ($200). A few mos later, I got a CU Visa @ $500. After 6 mos, I got a CLI to $2500. My Cap Ones are stuck @ $500 and $750. One is being cancelled and the other is being sock-drawered.