Hi Guys,
Reading around i found a really great replay from "Themanwhocan" here: http://ficoforums.myfico.com/t5/General-Credit-Topics/How-do-I-play-the-1-9-Utilization-Game-Please-... well here is basically what it said:
"You want to impress the credit card companies. You want to show them that you have credit cards, that you are using them, and that you are paying them off regularily (ideally every month). These companies will decide if they want to loan you more of their money, and they are concerned with risk, and return on investments, etc. So usually for these companies you want to have your monthly charges report to the credit bureaus, then pay in full before you are charged any interest. And don't use too much of any one card, ie, don't rack the card up close to 100%, that can be interpreted as you are finding it difficult to meet your expenses, etc. Appearing desperate is never good."
I have two Capital One CCs , both are QS1 and i am getting 1.5% cashback for every dollar i spend so i have heavily been using both cards, when i opened them, one was $1k (Lets call it card # 1) and the other $2k (Lets call it card # 2) , well right after my 3 statement (card 1) i asked for a cli and it was increased from $1k to $3k (still waiting for card 2 thirt statement to ask for a cli).
As i said i have heavily been using these card i mean heavily lol, some small transactions and most of them are big to almost max out the card (like $2.8k a month on card # 1 and $1.9k a month on card #2) and not just that, also several times in the same month, ex: in the last 3 weeks i have used over $7k on just one of them, the good thing is i always pay in full making several payments day or two after been used (last night just paid $1.5k) and never missed a due day, always pay in full before my due day, both cards report 0 balance since i got them (my util is 2% of $65K max credit since september)
I am not desperate for money (make $90k a year) and i am not using the credit because i need it, i use it because 1- i can pay them on time, 2- getting 1.5% cashback, i dont like to have cash on me and dont like to use my debit card so i always use my credit cards even to pay for a $1 botlle of water.
So here is my question, its wrong what i'm doing? 
, should i only use 30% of my limit a month so i can show capital one that i am not desperate for their money?, can someone put me in the right direction?, i am missing something?,
Please dont get me wrong, i am just want to learn so i can get where im going fast and without troubles lol
Thanks in advance 
@Anonymous wrote:Hi Guys,
Reading around i found a really great replay from "Themanwhocan" here: http://ficoforums.myfico.com/t5/General-Credit-Topics/How-do-I-play-the-1-9-Utilization-Game-Please-Help/td-p/2471157, well here is basically what it said:
"You want to impress the credit card companies. You want to show them that you have credit cards, that you are using them, and that you are paying them off regularily (ideally every month). These companies will decide if they want to loan you more of their money, and they are concerned with risk, and return on investments, etc. So usually for these companies you want to have your monthly charges report to the credit bureaus, then pay in full before you are charged any interest. And don't use too much of any one card, ie, don't rack the card up close to 100%, that can be interpreted as you are finding it difficult to meet your expenses, etc. Appearing desperate is never good."
I have two Capital One CCs , both are QS1 and i am getting 1.5% cashback for every dollar i spend so i have heavily been using both cards, when i opened them, one was $1k (Lets call it card # 1) and the other $2k (Lets call it card # 2) , well right after my 3 statement (card 1) i asked for a cli and it was increased from $1k to $3k (still waiting for card 2 thirt statement to ask for a cli).
As i said i have heavily been using these card i mean heavily lol, some small transactions and most of them are big to almost max out the card (like $2.8k a month on card # 1 and $1.9k a month on card #2) and not just that, also several times in the same month, ex: in the last 3 weeks i have used over $7k on just one of them, the good thing is i always pay in full making several payments day or two after been used (last night just paid $1.5k) and never missed a due day, always pay in full before my due day, both cards report 0 balance since i got them (my util is 2% of $65K max credit since september)
I am not desperate for money (make $90k a year) and i am not using the credit because i need it, i use it because 1- i can pay them on time, 2- getting 1.5% cashback, i dont like to have cash on me and dont like to use my debit card so i always use my credit cards even to pay for a $1 botlle of water.
So here is my question, its wrong what i'm doing?
Please dont get me wrong, i am just want to learn so i can get where im going fast and without troubles lol
Thanks in advance
We'll be glad to help you out, buddy. But before we can help you best, the folks here probably need you to clarify a few things.
The way your post is worded, it seemed at first as though you had exactly two credit cards (two Cap One cards). You are spending close to the max on your cards because, it seemed, these were the only two you had.
Then toward the end of your post, you mention that you have 65k as your combined total credit limit and that your current utilization is 2%. This suggests that you actually have several cards. Can you clarify for us how many cards you have, which are being used, and what their credit limits are?
The way your post is worded, it seemed at first as though you had exactly two credit cards (two Cap One cards).
You are spending close to the max on your cards because, it seemed, these were the only two you had.
What makes you think that these are the only one i have?, because i use them a lot?, well that is not the case, these cards are the one i use the most because i get 1.5% caskback in everything (others CCs just do 1% cashback in everything) and also (got this info from this forum) they are CLI friendly, means i can request CLI without HP few times a year, basically make them fat without any negative impact on my credit (just talking in my case here, the rest of the cards i have ex: BoA and Chase will be a HP if i request a CLI), but you are right, they are not the only cards i have.
Then toward the end of your post, you mention that you have 65k as your combined total credit limit and that your current utilization is 2%.
This suggests that you actually have several cards. Can you clarify for us how many cards you have, which are being used, and what their credit limits are?
I have several others CCs with limits from 1K to 8.5K and other store cards with limits from 5K to 12K, i always try to use all of them to maximize rewards ex: AMEX is used just for groceries (3% cashback), BoA just for gas (3% cashback), Freedom and Discover mosly on Amazon and Diapers (5% cashback), CareCredit for Medical, etc but i do try to use all of them to show some usage, and as i said PIF before Due Day.
Let me know if you need more info.
Thanks in advance.
CreditGuyInDixie:
I pay all my cards several times a month and the two most important payments are: before the closing day (statement day) and the due day, i have a excel with all my statement days and due days for all my cards and i always make sure to have 0 or low balance before the statement day so the cards reports a pre-define amount, i always try to be between 0-5% utilization based on the 65K i have, that is why i am saying i am right now @ 2%, ex this month i let Discover report $50 balance, BR will report around $80 and few of them will report a balance them i will PIF right after.
NormanFH:
Spending - the more, the merrier. Pay it down each month as often as necessary.
They really don't care what you are doing with their competitors cards, as long as they are not maxed out.
That is basically what i am doing, spending a lot but making several paments, i also try to leave on the card around $200-$300 but as i said, just for a day or two.
Scores - do whats necessary to get ypur scores as high as possible.
That means low UTI (under 10%) carried on as few cards as possible.
My utilization is 2% right now but i always make sure to have it between 0-5%, no more than that.
Financials - high income/low debt = lower risk of default. That means higher limits.
My income is 90K and have some saving so this wont be a problem,
Question: what do you mean with
They really don't care what you are doing with their competitors cards, as long as they are not maxed out.
Thanks in advance.
Do not rely so heavily on usage despite the popularity of the meme here and on other credit sites. The primary factors are your credit profile and income. Usage may help a little in some cases but it will not overrule those factors or make or break a CLI on its own. Keep the standard factors in mind:
http://www.myfico.com/crediteducation/whatsinyourscore.aspx
As well as other general advice not covered in the link above about reported utilization, number of balances, etc.
For relevant feedback you'd need to give us a lot more information to give us a better idea of your credit profile.
@Anonymous wrote:i always pay in full making several payments day or two after been used (last night just paid $1.5k) and never missed a due day, always pay in full before my due day, both cards report 0 balance since i got them (my util is 2% of $65K max credit since september)
If both report 0 then your revolving utilization is 0. Be careful basing your revolving utilization on your current balances. It's your reported utilization as indicated on your reports that matter for scoring purposes. You don't want all your cards reporting 0 balances. There is a hit for that. Make sure you understand the difference between reporting a balance and carrying a balance. You can pay statement balances in full and still have reported balances. It's all a matter of when you pay relative to the report date. The due date is not relevant for reported balances. It is, however, relevant for keeping your account current and avoiding interest.
@Anonymous wrote:So here is my question, its wrong what i'm doing?
You can spend whatever you want. 30% is a suggested max for reported revolving utilization. 30% however, is far from ideal. Lower is generally better and ideal will be under 10%. However, you really don't need to obsess over revolving utilization aside from keeping it under 30% unless you're applying for new credit. Your revolving utilization is determined by the current balances and limits on your reports. Prior utilization does not matter. That said, there are those that choose to constantly micromanage their revolving utilization.
While revolving utilization has a significant impact it's not the only factor that matters. Again, give us a better idea of your profile for recommendations.
@Anonymous wrote:The way your post is worded, it seemed at first as though you had exactly two credit cards (two Cap One cards). You are spending close to the max on your cards because, it seemed, these were the only two you had.
Then toward the end of your post, you mention that you have 65k as your combined total credit limit and that your current utilization is 2%. This suggests that you actually have several cards. Can you clarify for us how many cards you have, which are being used, and what their credit limits are?
Good catch, I totally took it as only 2 cards and glossed over the 65K available credit.
@Anonymous wrote:What makes you think that these are the only one i have?:
We only know what you tell us. Your post mentions the two cards and focuses on them. In order to help you we need to fully understand the entire picture.
@Anonymous wrote:I have several others CCs with limits from 1K to 8.5K and other store cards with limits from 5K to 12K, i always try to use all of them to maximize rewards ex: AMEX is used just for groceries (3% cashback), BoA just for gas (3% cashback), Freedom and Discover mosly on Amazon and Diapers (5% cashback), CareCredit for Medical, etc but i do try to use all of them to show some usage, and as i said PIF before Due Day.
How many of these report balances? Optimal is to have 1 card reporting 10% or less. That said, not everyone needs to squeeze out every possible point like that. For example, most of my cards report balances but my reported utilization is well under 10% and my FICO 8s are around 800 or just over so I don't worry about it. Someone in a different position may want to do as much as possible to eke out points. When was the last time you carefully reviewed reports from all 3 major CRA's?
@Anonymous wrote:My utilization is 2% right now but i always make sure to have it between 0-5%, no more than that.
If it's 2% reported then your bottleneck probably exists elsewhere. 1-2% change probably won't have a significant impact. To determine where the problem lies we need a better understanding of your entire profile. Otherwise we can only provide very general information as we have done and you have to carefully review your reports with that information in mind to find your trouble spots.