High Utilization over 70% I PIF each month. How to proceed to lower usage?

[NRB525]

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@Anonymous wrote:

So a little over 4 months into my credit journey my utilization is very high due to low CL's for my usage. Last month my WF card was nearly maxed out at 89%. My Target card remans at 0% since I only use that one a month for small dollar purchases so I pay that off quick

I PIF each month so how should I proceed? I'd rather not have to make multiple payments over the course of the month since that is a pain to keep track of. Is this best course to take if I can? One payment a month is what I am doing. 

I have a single HP with both TU and EQ right now. 

Do I apply for more cards to try and bring my utilization down or would the hits from HPs be worse then keeping high usage and hoping for a CLI down the road. Mainly on my WF card? 

Thanks! 

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The OP would rather not do the multiple payments game. I don't see any reason why it is required or even worth the time, in this situation with one card that seems to be able to handle the monthly charges. Utilization has no memory. If OP wants to pay it down for a lower staement print, ahead of an app, that's a different decision. But OP is a while away from that point, so there's no point sweating over daily postings here. Credit cards provide a grace period. Might as well take advantage of it, if the credit limit allows. 

[Anonymous]

Thanks for the tips.

Seems like the best course is to coninute onwards with what I am doing and hope for CLI's down the road. Hopefully PIF each and every month leads to Auto CLI or a SP CLI down the road without issues. 

[SouthJamaica]

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@Anonymous wrote:

So a little over 4 months into my credit journey my utilization is very high due to low CL's for my usage. Last month my WF card was nearly maxed out at 89%. My Target card remans at 0% since I only use that one a month for small dollar purchases so I pay that off quick

I PIF each month so how should I proceed? I'd rather not have to make multiple payments over the course of the month since that is a pain to keep track of. Is this best course to take if I can? One payment a month is what I am doing. 

I have a single HP with both TU and EQ right now. 

Do I apply for more cards to try and bring my utilization down or would the hits from HPs be worse then keeping high usage and hoping for a CLI down the road. Mainly on my WF card? 

Thanks! 

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You should pay most of the card off before the statement cuts.

I'm sorry if that's an inconvenience for you. You have to prioritize: (a) convenience or (b) credit score.

No, getting more cards won't help you at all. It will probably hurt you.

[Anonymous]

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@AverageJoesCredit wrote:
If you pif you realistically dont have high utilization.

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Not necessarily true.

If the OP has a $1500 limit card and spends $1500 on it every cycle, even if he's PIF that previous statement balance of $1500, he's going to report the new charges totaling $1500.  This could result in the card being perpetually maxed out, even though he's following strict Transactor behavior.  Such a spend/payment pattern though with most lenders would likely stimulate a CLI within 3-4 months, maybe 6 tops, so I say just keep going on with life, business as usual.  Trying to build that card which is clearly getting heavy use will be easier and makes more sense than opening other new accounts for the sake of utilization padding/reduction.

[Anonymous]

Yeah, i was going to say that OP should keep in mind that some Banks review accounts at 6 months. And based on his activity, WF may see that they need a CLI. If the card is consitently being maxed out, and even paid off and maxed out again. Could show them a larger increase may be in order. If OP is essentially putting $3500 a month through a $1500 card, pretty sure this will trigger action on their part. 

As long as the rest of OP's CR is in good shape. IF you don't see a auto CLI by the 7th statment, maybe you should call them and discuss the matter. Explaining that it's inconvienent to PIF several times per month. I would also try to avoid a HP in doing this if possible, though i don't know WF's policy regarding that. 

Once that's done, maybe two months later if a HP, then I would look at adding another Bank Card. 

[AverageJoesCredit]

Understood Brutal, good example, but that only happens if they let that balance report. It just looks weird saying one is 70% uti but pif. Almost oxymoronic geez i hope thats the right word lol. Sort of like if someone said "i have 100k in limits and am drowning in debt "when said debt is like $100 reporting

[Anonymous]

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@Anonymous wrote:

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@AverageJoesCredit wrote:
If you pif you realistically dont have high utilization.

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Not necessarily true.

If the OP has a $1500 limit card and spends $1500 on it every cycle, even if he's PIF that previous statement balance of $1500, he's going to report the new charges totaling $1500.  This could result in the card being perpetually maxed out, even though he's following strict Transactor behavior.  Such a spend/payment pattern though with most lenders would likely stimulate a CLI within 3-4 months, maybe 6 tops, so I say just keep going on with life, business as usual.  Trying to build that card which is clearly getting heavy use will be easier and makes more sense than opening other new accounts for the sake of utilization padding/reduction.

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Just to add to this took my WF card to 97% last month and paid in full. No increases yet. Maybe next month Really need like a 5k limit to get to 30% usage but that may not happen for some time. 

[Anonymous]

I believe WF is one of those that review every 6 months(?), so another couple months and see what happens. If you don't see an auto CLI by the 7th statement, they are likely on the 12 month cycle. So I would call them after 7 months and speak with one of their UW's to see about an increase. Not sure if computer generated CLI comes with a HP or not. But you may need to burn one to get to $5K.

I would think that after 6-12 months of heavy usage and multiple payments, they would get the hint you may need higher CL.

However, it's no sweat of their ___ if you have make several payments to keep from going over your limit. Meantime they're still racking up swipe fees and you're paying them back, so I don't know if there's incentive or not. Having only one card can be troublesome at times, and must do whatever to get by until that changes.

[Anonymous]

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@Anonymous wrote:

However, it's no sweat of their ___ if you have make several payments to keep from going over your limit. Meantime they're still racking up swipe fees and you're paying them back, so I don't know if there's incentive or not. Having only one card can be troublesome at times, and must do whatever to get by until that changes.

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Good point! They might say your not carrying a balance month to month so you don't need a credit limit increase I'll suffer with a lower credit score due to higher utlization due to low limits. Or maybe no limit increases due to the fact i'm unlikely to carry a balance due to past history? 

Hopefully that isn't the case and my train of thinking is wrong. 

I spoke with them awhile ago just to inquire about information but not actually request a CLI and they told me it's a soft pull at first if denied i can try again and authorize a HP. 

[Anonymous]

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@AverageJoesCredit wrote:
Understood Brutal, good example, but that only happens if they let that balance report. It just looks weird saying one is 70% uti but pif.

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It sounds like the OP always lets that balance report, so he's always going to be reporting high utilization while paying in full.  The term PIF only refers to the payment amount required to not have to pay interest (usually the statement balance) so if someone is floating a balance from month to month to take advantage of that grace period it's possible for them to report very high utilization every month.  This is especially true when you're talking a low limit card and when someone is making a [relatively] healthy spend on it cycle after cycle.