Question about credit utilization

[cardjunkie]

Hi everyone. My question concerns credit card utilization %. I'm getting a secured card with a $200 limit; let's say I max out the card one month, but immediately pay it down to $40 (20% of limit), then pay that remaining $40 on the statement due date. Will my CC company report that $40 to the bureaus and not the $200?

Thanks.

[DaveSignal]

If the current balance is at $40 at the time of the statement closing date, that statement balance is usually the balance that is reported.  There are one or two cards I have had before that have had some strange reporting schedules, but those are few and far between.

But, utilization has no history, so if you don't get it to where you want on the first try, you can just fix it in the following month.

[Jerry45]

I am a newbie, who just reached the 6 month mark on my oldest secured card, but I received great advice here when I started out.

Keep your utilzation on secured cards at  around 9%, pay them off in full for the first 6 months until you qualify for a FICO score, and be patient like a gardening Grandma.

I am no expert, but by doing this I received 700+ EQ Fico score with two low limit Secured cards. Hope this helps

[Anonymous]

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@cardjunkie wrote:

Hi everyone. My question concerns credit card utilization %. I'm getting a secured card with a $200 limit; let's say I max out the card one month, but immediately pay it down to $40 (20% of limit), then pay that remaining $40 on the statement due date. Will my CC company report that $40 to the bureaus and not the $200?

Thanks.

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If you pay in full by the due date, you won't have to pay any interest.

But this is not the same as paying down/off the balance by the statement date, which may be important if you wish to control the reported utilization.

[seeyouthere]

It all depends on when the CC company send info to the credit bureaus.

[Trying2B850]

What is it that the CC companies are reporting? ...the current balance? or the highest balance during the billing cycle regardless if a payment has been made or paid off entirely?

Trying to determine what is CCU.... the current balance reported -or- highest balance during anytime of the billing cycle.

[DaveSignal]

Most lenders report the statement closing balance (the balance on the bill when it is issued once a month). They also report the highest balance, but that is separate value and is not factored into utilization.