@Anonymous wrote:
Could someone seriously explain the proper way of utilization? Everyone is saying something else and it's confusing me like..for example..it's ok to use all your credit limit but make sure you pay it down below 1-10%? It really doesn't make sense to me and some say just make sure you are below 30% for the whole month before the statement comes in?
This is what I'm doing based on what I've learned from this forum:
I have 3 cards (2 MC 1 store) and out of those 3 cards 2 of those I'm charging something to them every month and paying it off as soon as the transaction posts. The reason I do this is to keep the cards active.
The card I want a larger credit limit in 6 months when it auto increases is my quicksilver. I charge EVERYTHING I can to the card to show capital one I'm using it. By doing this they get the transaction fees that they charge the stores/bill payers and it shows I'm using it. THEN I pay the quicksilver card down to 9% before the statement date. This does a few things: Posts to my credit reports that I'm using the card. It shows that I'm not abusing the card by not having a huge charge and paying just the minimum.
Like the post above: This is based on optimal scoring. If I let the utilization percentage be higher than 9% then my score goes down a little bit. The next month? I can move it to 9% and I'll have the optimal score. I’ve learned that the utilization doesn’t have a Credit Report memory, so they can’t see the past months utilization. That’s why it doesn’t “truly” matter unless you’re apping for something. I haven't gotten an answer out of anybody on the forum if the 9% builds the score monthly or not though.
@Anonymous wrote:Yeah ill start paying my balance down to 9% before my statement comes in, I really want my credit to be in top shape if its possible paying couple twice a month. Saying that what do you guys typically do before the statements cuts?
Most companies let you pay many times a month. Be sure to ask the provider if you're not sure.
What I do before statement cuts: I found out when it cuts by asking the reps via secured mail. Mine cut the 10th of the month.
I stop using the card about the 4th or 5th of the month. This allows all pending transactions to post. After they post I pay the card down about the 7th so that the account is paid to 9% by the 10th. Then I don't use the card until the statement arrives. Normally about the 13th. So from the 4th-13th I don't use the card and either stop all purchases or use another card/debit card.
Thanks for the advice 
I have one last question, which my fico product is worth the money as I'm deciding which one is the best? Right now I'm deciding between the 9.95 and 14.95 
@Anonymous wrote:Thanks for the advice
I'm.... I can't speak to the myFico products. I believe it depends what your goal is. Mine? I'm rebuilding and disputing charges so I'm keeping a close eye and want a full report monthly/ weekly depending on what's going on. I chose to go with eliminate ID that does all 3 CRA, even though it's a FAKO scoring model it gives me an idea of improvement. I'll pull the 3 from myFico when I get ready to app in a year. Until then my CMS is good enough. There is a sticky somewhere here about the different CMS products and costs/basic features. I'm sure the 14.95 option is good because it gives you 1 CRA and report monitoring.
Thanks rbfool appreciate the help, on the other note for the utilization, right now I'm going to try to make sure I get under 30% if I go over on accident or something comes up..it wouldn't hurt to pay the balance down before the statement closes right? Would it effect my score if I go over and try to pay it down below 30%? I'm seriously trying to make sure I understand this whole utilization concept.
appreciate the help, on the other note for the utilization, right now I'm going to try to make sure I get under 30% if I go over on accident or something comes up..it wouldn't hurt to pay the balance down before the statement closes right? Would it effect my score if I go over and try to pay it down below 30%? I'm seriously trying to make sure I understand this whole utilization concept.
So the idea here is that you can all the way up to the limit as long as you pay it down to 9% before the statement date. The key thing is that the payment has to post before the date.
That's if you want to prove your usage. You can always just charge 10 bucks and let it auto pay on the due date.
That's if you want to prove your usage. You can always just charge 10 bucks and let it auto pay on the due date.