Utilization versus Credit Score

[Anonymous]

I now have 7 cards with a total CLI of $43,100.  My current utilization is less than 3%.  5 out of the 7 cards are new accounts (last month).  On the one hand, I want to increase my credit scores--especially after the negative impact from opening multiple new lines of credit.  However, I also want to convince the credit card companies to increase my credit limits.  If I do not use the card and maintain a 0 balance, would this not hurt my request for additional credit?  What is the best strategy to achieve both objectives?

[Anonymous]

if you don't use the card then they have no real reason to extended you further credit. creditors want to see use 

[taxi818]

Agreed/ you need to use them in order to show the need for a increase.does not mean you need to max them out. use them, Pay, Wash and repeat is all it takes. of course worrying aobut utilization so much is useless. thats the point of having the cards. keeping under 30 or 20 percent is all it takes. Time will build your scores. if you are buying a house then i understand trying to get everypoint necessary to get score high. Which can save you money by having a low interest rate. But otherwise its not necessary. no difference between 3% or 8% as far as points. I always stay around 8-15% usage as to not appear risky with my usage. have been as high as 36% no problems. and thats with over a 140k limit. currently at 7%. no big deal.

[Anonymous]

heck i have had utilization of 90% total lol. score did suffer immensely though.

[Anonymous]

Thank you both for your reply.  I am aiming to purchase a home late next year.  I will not be opening any new accounts and have no need for credit increase per se.  It would be nice though.  My #1 objective is to increase my credit score sufficiently to be able to get a good deal on a house.

[Anonymous]

For mortgages, you generally want to look at the 04 scores, rather than the 08.   MyFico lists those on their three bureau report.