Keeping Util below 10-30% always?

jason0618 · ‎09-17-2016

So I'm reading the Bk to 700 guide and it said you NEVER go over 10% utilization. Does it make a difference if I pay if off though before statement cuts? I've got a secured credit card with $500 line and I paid my electric bill on it earlier this month, which was $490. Put it on the card and paid it off two days later once it posted.

Scores as of 04/2021

Gardening until further notice

Anonymous · ‎09-17-2016

I may be wrong but I believe as long as you pay it down to under 10% before the statement date you should be golden.

Anonymous · ‎09-17-2016

@jason0618 wrote:
So I'm reading the Bk to 700 guide and it said you NEVER go over 10% utilization. Does it make a difference if I pay if off though before statement cuts? I've got a secured credit card with $500 line and I paid my electric bill on it earlier this month, which was $490. Put it on the card and paid it off two days later once it posted.

Don't conflate "usage" with "utilization"

Utilization is based entirirely on the statement balance, nothing more. You can charge it and py it multiple times if you wish, as long as the balance on the statement closing day is low, then you are fine.

FWIW, the advice to "never go over 10%" is highly overstated, UTI does not look at history, it is only a current snapshot. If it goes up one month your score will drop, but they will rebound as soon as it goes back down.

Anonymous · ‎09-17-2016

Well put Norman I learned that from you. I tried to convey that sentiment but with your experience and knowledge you were able to put it more succinctly than I was. A bit off topic but does using your card heavily hurt you at all without going over your limit while keeping it paid in full each month?

ktl72455 · ‎09-18-2016

@Anonymous wrote:
Well put Norman I learned that from you. I tried to convey that sentiment but with your experience and knowledge you were able to put it more succinctly than I was. A bit off topic but does using your card heavily hurt you at all without going over your limit while keeping it paid in full each month?

No it dont hurt you a bit, use as heavy as you want and can afford to pay back off.

From MI.
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Anonymous · ‎09-18-2016

Thanks I thought that but then I ran across a post stating some thing contrary and then I became a bit confused. Thanks for clearing that up for me.

jason0618 · ‎09-18-2016

Good knowledge to have, thanks.

Scores as of 04/2021

Gardening until further notice

Anonymous · ‎09-20-2016

@Anonymous wrote:
Well put Norman I learned that from you. I tried to convey that sentiment but with your experience and knowledge you were able to put it more succinctly than I was. A bit off topic but does using your card heavily hurt you at all without going over your limit while keeping it paid in full each month?

As a general rule, no, it will not hurt you - that is actually "preferred" usage, as it increases swipe fees to the lender (and profitability) without increased risk of default.