Quick question about charge card.

[Anonymous]

So, I have two cards currently. A kohl's store card that I opened two years ago (which I don't use often) along with an Amex gold card I recently opened in October. 

My question is: Since my charge card is the only card I use that adds to my overall debt, would it be wise to pay it off before the statement cuts each month? Or should I let my balance show by paying after it cuts? I use the gold card as my everyday spender so I just don't know if letting my balance fluctuate my scores each month would be a bad thing or if I'm just overthinking it all. Any advice would be appreciated, thanks!

[Trudy]

One card should report a balance or your scores will get hit with the all zero penalty.  You can easily rebound should that happen by reporting a small balance the next cycle since UTL has no memory.  This is where the AZEO term comes from (all zero's except one).  So let it report, then pay it off.  No interest charged if paid off by the next due date.  Ideally you'd want the balance to be less than 9% to maximize the scoring benefit from aggregate UTL.

Scores may fluctuate for various reasons like UTL.  As long as the changes are not due to derogatory information it's okay,  if you're not trying to get the highest score for an upcoming app.  Many stress about the small ups and downs but it doesn't matter if you're not apping for anything.  

[Trudy]

Oh, and it said that you want the charge card, not the retail card to be the one reporting.  I can't confirm this but it is stated here at least a thousand times.

[Anonymous]

Yes, my charge card is the only card reporting a balance. Thanks for the response, I was worried about the small temporary dips in my scores but it makes since not to because I'm not applying for anything. Thanks

[Anonymous]

Utilization will always be 0% on version 8 because charge cards are not factored into utilization except for EX2.

That’s why many people use them.

[seattletravels]

For maximum scoring, you actually need at least 3 accounts with one reporting a small balance.  I'd recommend finding a low interest revolver and using that to carry the balance. 

[Anonymous]

I would disagree with that. I think you need at least 5 so you can hit the 20% line on EX2.

Otherwise it’s mathematically impossible to get lower than 33% of cards with a balance.

We have conclusively demonstrated that there is a line under 25% I believe it to be at 20%.