What you're asking makes sense, and also there are actually different impacts on your score for each of those scenarios. The first is your aggregate utilization. There are thresholds that you lose points each time you cross one. Those thresholds are 9%, 29%, 49%, 69%, 89%, and 100%. For newer, thinner profiles there may be a very slight point loss at around 4% or so as well. The second is your individual utilization. Those numbers are the same, except remove the 9%. Individual starts to ding you above 29%. For best results in all scoring models, keep all revolvers at $0, with 1 regular bank card report a balance that keeps you in the bottom tier off those aforementioned thresholds. Although doing this on a regular basis is not necessary, it is kind of a 'blanket advice' to get all of your FICO scores to just about the best they could be at any point in time.
Aggregate and individual utilization are two different things. Utilization under 29% on any one card and under 9% overall should put you under the main thresholds for each of those categories. If you want to maximize you can employ AZEO (All Zero Execpt One): have one of your cards report a balance of more than $0 but less than 9% of your limit and have the other one report a $0 balance. You'll also want the AU card to report a balance between $0 and 9% so you don't get the separate AU zero-balance penalty. Check out Birdman7's excellent scoring primer for more details.
@eyarman128 wrote:Hello everyone,
So, I have a total of 2 CCs and am a AU on one other CC. My question is, do I want all card limits combined to reflect a 1%-3% or should I have each individual card at 1%-3% utilization? Hope that makes sense.
Both. You want your utilization to be low, both individually and in the aggregate.
