What is the Recommended amount of use on Credit cards?

[Anonymous]

So at the moment I have 4 cards. Discover it, Freedom, Capital One and kohls. 

I have always used up to 9% on all the cards and let it cut at that. But now Im not spending as much so I

cant have that much of a balance on every card every month.

My question is, Do I have to have a balance on every card every single month for it to help my credit? And can it be as little as say 1%-3%

of my CL? It doesnt have to be as high as 9%?

[coldnmn]

Ideally have one credit card report 1%-9% at statement close and the others report 0% for best credit score.

[Anonymous]

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@coldnmn wrote:

Ideally have one credit card report 1%-9% at statement close and the others report 0% for best credit score.

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Oh really? That I can do, I thought it was to use all credit card and have them all report a 1%-9%

[coldnmn]

You can use as much of your credit limits of your cards without going over. But before your statements close have all but one paid to 0% and one at 1%-9%. Then the one reporting you can pay before due date to avoid interest. If you start doing that you should see a jump in your credit score. Some lenders frown on people using part of their credit limits on every card. You will see that for reason for denial for credit reading the forum. If you have cards with no annual fee and don't use much or at all. I suggest putting a reoccurring bill like Netflix on it and pay off before statement closing. That will keep the card from being closed and help with utilization. If that's not possible use the card every 3-6 months and pay off before statement closes.

[red259]

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@coldnmn wrote:

Ideally have one credit card report 1%-9% at statement close and the others report 0% for best credit score.

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I shoot for 1% reporting on only one card when I am getting ready for apps etc. That being saidyou don't need to do this every month, since your score will change month to month based on credit usage. As was previously pointed out, you can use your cards as much as you want and still pay off the balance before the statement cuts to preserve your max score. 

[CreditDunce]

The other posters are correct in how to maximize your credit score for the current month.   Just note, you don't have micromanage each month.  You only need to make sure one CC is reporting 1-9% and the other $0 when you need to apply for something big or you enjoy monitoring your credit score.

[red259]

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@CreditDunce wrote:

The other posters are correct in how to maximize your credit score for the current month.   Just note, you don't have micromanage each month.  You only need to make sure one CC is reporting 1-9% and the other $0 when you need to apply for something big or you enjoy monitoring your credit score.

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The caveat to this is that if your going for SP CLI requests or SP apps you may need to manage your credit up to three months out in case a lender isn't SPing every month. 

[CreditDunce]

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@red259 wrote:

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@CreditDunce wrote:

The other posters are correct in how to maximize your credit score for the current month.   Just note, you don't have micromanage each month.  You only need to make sure one CC is reporting 1-9% and the other $0 when you need to apply for something big or you enjoy monitoring your credit score.

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The caveat to this is that if your going for SP CLI requests or SP apps you may need to manage your credit up to three months out in case a lender isn't SPing every month. 

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Agreed.    If your CS is borderline for a CLI, then you may want to pretty up your CS as best you can while working on it.  On the other hand, some CCC's may be more likely to give auto CLI's for people who let large balances report.   For example, a couple of months ago I let several CC's report including a large balance on Discover.   Discover auto-CLI'd me.  I was very surprised because it was only the second statement.  If my CS was lower, the high util may have stopped me from getting the CLI.

I just try to give easy to follow advice for new OP's on the board.  Most don't need to play the MyFico Reindeer games.  They just need some basic advice on how to get a decent credit score.  Then they will never be seen here again.

[sedric7979]

you do not need to leave 1 to 3% on each credit card , but leave something on all four credit cards. To get the myfico high score, have between 1 to 4% Utilization balance reported to the credit bureau. I have 4 credit card and one loan account . what i do each months i add up all my card limit together. Say that each of my 4 credit card have 2,500 credit limit. I multiply 4 by 2,500 = 10,000.00 dollars so now my overall limit is 10,000 dollars, now i say 1% of 10,000 = 100 dollars , or 2% of 10,000 =200 dollars. Final step now. Of that two 2% what going to reported as a balance, divide 200 by 4 = 25.00 dollars, that's what you going to leave on each credit card, now you have all credit card have a balance on it and now you using 1 to 2%. If you leaving 1% do the same thing. The Credit Bureau add up your overall total credit limit and your overall total Debt or Utilization. to your questions NO.    MO5751

[skigirl916]

I agree with Cedric.

When I've followed Cold's advice (all but one at 0% and the one other at 1-9%), my scores dropped significantly.

Whereas if I leave something on all cards, never above 20% on any one card and somewhere between 1-10% across all cards, my scores go way way up.