Utilization ?

[Imhotrodcrazy]

Hi all,   

Since I am relatively new I have a question on cc utilization.  Does the 1-9% utilization, ( to get the best scores), refer to how much you can charge on your cl  in a month, or what what the balance is after you make a payment?  Any advice is appreciated, thanks. 

[GLIGUY23]

I am pretty sure its the Balance that your Credit Card Company reports.

From what I have gathered some companies report a balance before a payment is made and most do it after the payment is made..  so you have to becareful. I am waiting for my statement to come on my first revolving account so that I can pay all but 5% of the balance. 

Mods or someone correct me if I am wrong.

Also if you post info as to what card it is someone might be able to chime in and get you more info. 

Message Edited by GLIGUY23 on 04-06-2009 07:09 PM

[Imhotrodcrazy]

Hi guy,   Thanks for the response.  Its my first cc in over 10 yrs.  I got one at a local credit union.  Things have changed a lot it seems in the past 10 yrs or so since I have had any credit, so I am a little confused about the new rules.  I am trying to boost my credit score.  At the present they are EX 709 ( according to the credit union), EQ 682, and TU 670. All are FICO scores.  It seems that its  hard to get those scores above 700, but if you dont do anything, as I have found out, they sure go down in a hurry.  Mine are low since the only credit I have  had in the past 10 yrs or so is just my mortgage.  Everything else I paid cash for.  Well, again, thanks for your help. I appreciate it.

Message Edited by Imhotrodcrazy on 04-06-2009 07:23 PM

[Anonymous]

Utilization refers to what is reported on your report.

You can charge as much as you wish, just make sure not to let too much of a balance report.

Check over on the CC forum and you can likely determine when your particular card reports and what balance they report(statement balance, balance on the day they report, etc).

[Junejer]

Hotrod, if I were you, I would call the CU and ask when they report to the CRAs. Most CCCs report the balance on the statement closing date, but there are exceptions.

So, charge until your heart's content, just make sure your util is <9% by the report date.

[Imhotrodcrazy]

Sidewinder,,,,,thanks for the info.  this is a great forum.  glad i found it.

[Imhotrodcrazy]

Byrdman,  thanks for the help......its appreciated.