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can someone explain to me

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bsal
Frequent Contributor

can someone explain to me

I need help with understanding the credit utilization.

If I have a 10k card I'm suppose to keep it under 30% ?

And if I use my credit card am I suppose to. Pay the balance off right away? Or wait till my credit card bill is due? Or pay before the bill due date? I'm so confused can someone dumb it down for me please
Message 1 of 16
15 REPLIES 15
AutoBot
Established Contributor

Re: can someone explain to me

For optimal FICO scoring I think it's best to keep it at 10% or less utilization. You need to find your statement closing date, which is different than the date your payment is due by. You can then make a payment before the the statement closing date based on the utlilization your looking to post to your reports. Hope that makes sense.

 

 

Statement Close Date: 20th of each month

Current Balance: $2000 on a $10000 credit line

To maintain 10% utilization, you need to make a $1000 payment before the 20th

 

****just making up numbers and dates, but you get the idea

Message 2 of 16
bsal
Frequent Contributor

Re: can someone explain to me

Thanks for the help and the break down autobot
So make the payment before the statement closing date then wait on paying the remain until the actual due date ?
And also how can I find out when the actual closing date is ?
Message 3 of 16
AutoBot
Established Contributor

Re: can someone explain to me


@bsal wrote:
Thanks for the help and the break down autobot
So make the payment before the statement closing date then wait on paying the remain until the actual due date ?
And also how can I find out when the actual closing date is ?

The closing date should be listed on your statement somwhere.

Message 4 of 16
Anonymous
Not applicable

Re: can someone explain to me

Pay days before closing date, remember that you do want at least one credit card to report some sort of balance
Message 5 of 16
bsal
Frequent Contributor

Re: can someone explain to me

So the payment due dates are before the closing dates ? So what you are saying for example if my credit card is 10k I spent 2k payment due date is on the 15th your saying I should make a 1k payment before the 15th and let the other 1k balance carry over past the closing date? Am I getting it right ? If not let me know
Message 6 of 16
AutoBot
Established Contributor

Re: can someone explain to me


@bsal wrote:
So the payment due dates are before the closing dates ? So what you are saying for example if my credit card is 10k I spent 2k payment due date is on the 15th your saying I should make a 1k payment before the 15th and let the other 1k balance carry over past the closing date? Am I getting it right ? If not let me know

The statement billing period may show 12/2/2020 - 1/4/2021. Payment is probably due around 1/30/2021.

Message 7 of 16
bsal
Frequent Contributor

Re: can someone explain to me

Lol I'm sorry I'm still confused I guess I'm trying to see when should I pay it so it will show that I only used 10% if my bill is due on the 14th of every month and I spent 3k on a 10k card , should it be ok to pay the 2k before the 14th and let the 1k carry over so it will report 10% ? You get what I'm trying to ask? I hope I'm not the one confusing you if I am I apologize lol
Message 8 of 16
Anonymous
Not applicable

Re: can someone explain to me

The date your bill is due and the cut date aren't the same, call them and ask them on what date the billing cycle closes, whatever date thry give you, just pay 5 to 7 days b4 that


Even easier, whatever date your statement is generated , just pay a week before that lol
Message 9 of 16
Anonymous
Not applicable

Re: can someone explain to me

My capital one card. ... I get my bill on the 20th each month, BUT it includes all activity up to the 17th, so if I'm shooting to have it at 0%, I pay it off on the 13 or 14th, about a week before. (I probably could pay it on the 16th but I like to leave myself some wiggle room) so you need to figure out what those dates are for you.
Message 10 of 16
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