How to keep a recurring balance of 1-9%?

[jbrown773]

I was wondering how to keep a 1-9% balance because when I checked my fico score it said i had a 0% even though I use my credit cards I just pay them in full once the card allows me to pay them. What is the best way to do this where you get a 1-9% that reports? Whats the time frame to waiting to pay for something so it will report? 

[CAnNY]

Most CCC report the balance based on the balance at your statement date. Basically, you want to pay all cards off in full before the statement date, but leave 1-9% balance on one card so that on the statement date it reports the small balance. Basically if the card has a $500 limit u want it to report no more than about $45. Once the statement dates passes then you are free to pay in full the small balance you let report. It's more details to this but this is the basics. Sorry on an iPad. This is only needed however if you are trying to maximize your score for apps.

[RobertEG]

+1

Maintaining the supposed ideal each and every month is good for awhile, as it lets you experiment with the impact of 0% vs 1-9%.

But the effort reqired to maintain that reporting each and every month can become burdensome.

An additional factor is that when keeping anything above a reported balance of $0, that card balance also affects the % of cards carring a balance that month.

The mantra that 1-9% is always better than 0% thus is not necessarily, in my opinion, gospel.  The benefit from showing some balance may be more than any benefit in having a higher % of cards reporting a balance, so playing with it for a few months will give you some real data for evaluation of your specific scoring.

Until you actually need your score for a business or credit app, it becomes kinda academic, as FICO only scores the most recent % util.and % cards with a balance.

By keeping util undr 10%, you are always poised to tweak the max if and when needed.

In the meantime, there is financial benefit to not carrying a balance.