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So I have a double question I'm a newbie for credit

Skippy101
Member

So I have a double question I'm a newbie for credit

Question #1 - I see all this talk about credit ult not going over 25-30%? So is that per card or say if you have two cards is that combined  % for both? 

Question #2 do I want to make sure both cards are paid full each month or so I want to keep a small balance on only.one of them? Pro’s and cons? 

Message 1 of 16
15 REPLIES 15
tcbofade
Community Leader
Super Contributor

Re: So I have a double question I'm a newbie for credit

Yes.

 

...and it depends what your goal is.

 

Utilization looks at each individual account AND at the total utilization.  As a general rule, you want to keep each account under 28% as well as your total utilization under 28%.  (Under 8% is better if that's possible.)

 

For Fico scoring purposes, you would want one account to report a zero balance while the other reports a small balance.  (Less than 8%).

 

If you're not applying for anything at the moment, I'd tell you that it isn't worth the hassle.

 

If you're applying for a mortgage next month, it's absolutely worth the hassle.

 

 

12/01/21 Fico 8: EX 746, EQ 766, TU 760.
11/03/21 Fico 9: EX 745, EQ 758, TU No idea.

Zero percent financing is where the devil lives...
Message 2 of 16
FireMedic1
Super Contributor

Re: So I have a double question I'm a newbie for credit

You can use your cards all you want. The dont use more than 30% of your credit line on the net isnt true. More you swipe and use the card. Better chance for a CLI when the time comes to ask for one. The rest @tcbofade already addressed.






Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery from the @ 540's.
Message 3 of 16
OmarGB9
Community Leader
Super Contributor

Re: So I have a double question I'm a newbie for credit

Just to add on to what has already been said, you can spend as much as you want, even up to 100% of your limit. What matters is that you don't go over your limit, and even more important, that you don't let more than 30% report. In other words, a few days before your billing cycle closes, stop making charges, and pay down your current outstanding balance to less than 30% of the total limit.


Last App: 05/30/2021
Capital One Auto Refinance Loan

Currently rebuilding as of 04/11/2019.

Starting FICO 8 Scores:




Current FICO 8 scores:


Message 4 of 16
Skippy101
Member

Re: So I have a double question I'm a newbie for credit

so I just check my transunion score. it has me at 519 but Experian, has me at 582 and equifax has me at 578. all 3 credit companies all reporting the same accounts,there is no difference in any of the reports so why such a big difference in scores ?

Message 5 of 16
FinStar
Moderator

Re: So I have a double question I'm a newbie for credit


@Skippy101 wrote:

so I just check my transunion score. it has me at 519 but Experian, has me at 582 and equifax has me at 578. all 3 credit companies all reporting the same accounts,there is no difference in any of the reports so why such a big difference in scores ?


What is the source of these scores?  Are they FICO scores?

Message 6 of 16
SouthJamaica
Super Contributor

Re: So I have a double question I'm a newbie for credit


@Skippy101 wrote:

Question #1 - I see all this talk about credit ult not going over 25-30%? So is that per card or say if you have two cards is that combined  % for both? 

Question #2 do I want to make sure both cards are paid full each month or so I want to keep a small balance on only.one of them? Pro’s and cons? 


1.  There is individual account revolving utilization and aggregate revolving utilization.

2.  Both are based on the balance reported on the reporting date, which is in most -- but not all -- cases, the statement date.

3. Your individual account utilization should not exceed 28%.

4.  Your revolving utilization is optimum at 6% or lower.

5.  You should not try to "keep" a balance anywhere, but you do want at least one account to "report" a balance each month.

6.  If you have 2 accounts you should pay one off before the reporting date, and pay the other one off right afterwards.


Total revolving limits 698000 (605000 reporting) FICO 8: EQ 721 TU 742 EX 715

Message 7 of 16
Skippy101
Member

Re: So I have a double question I'm a newbie for credit

Yes finstar these are the Fico scores 

Message 8 of 16
OmarGB9
Community Leader
Super Contributor

Re: So I have a double question I'm a newbie for credit


@Skippy101 wrote:

Yes finstar these are the Fico scores 


Where did you get these FICO scores from?


Last App: 05/30/2021
Capital One Auto Refinance Loan

Currently rebuilding as of 04/11/2019.

Starting FICO 8 Scores:




Current FICO 8 scores:


Message 9 of 16
Skippy101
Member

Re: So I have a double question I'm a newbie for credit

From each credit bureau website from the credit report all scores are fico 8 model 


@OmarGB9 wrote:

@Skippy101 wrote:

Yes finstar these are the Fico scores 


Where did you get these FICO scores from?


 

Message 10 of 16
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