utilization question

[Anonymous]

I recently went rom 88% util to %55 with only a 3 point increase (ugh). The 55% left is a 7 year old charged off line of credit that is still with the OC, so there's nothing I can really do about it (not going to pay it this close to it falling off). I was told to charge a small balance to my 2 secured CC's so I put about $20 on each (one has $200 limit, one has $300 limit) to help my scores a bit. But now I'm worried my util will go up (even if it is just a small %) and I will lose points. I really need every point I can get lol. I also have a CC with a $1700 limit that has a $0 balance right now. Anyone have any advice? Should the small balances help or hurt based off of my current utilization? To help my scores is it better to let them report a small balance every month or let them report a balance this month, then $0 next month and so on? My CC's are the only thing I have on my report to work with to bring my scores up so I want to make sure I'm doing everything I can to help my credit.

[Anonymous]

If you put a small balance, only put it on one of them not both.

But to be perfectly honest, I don't think that will help at all and might even make it worse.  If your utilization is due to the CO, nothing is going to help until that is gone. 

There are 2 ways to do that, pay it off or let it age off.  From what you have said it looks like it should come off within the next 6 months.

At this point, I would not do anything.  Wait for it to come off and see what happens to your utilization.

[Anonymous]

Does it help my credit history to have CCs with $0 balances? The charge off has a balance of $2879 and a limit of $3000. I can't see paying it off when it is so close to aging off. It is due to fall off between August and September depending on the credit bureau. I'm just trying to figure out if there's anything else I can do to help my scores over the next few months. I've worked hard to get a bunch of old collections off and now I'm kind of at a stand still.

[Anonymous]

Your credit history goes by the age of the account and not what type of balance you have.

I am very sure when that CO falls off you will have a big jump in score.  That seems to be all of your utilization.  Going from 55% to 0 will be a major score raiser.

Especially if you have nothing else negative on your report.

I wouldn't touch it, let it age off.  Then if you pay, it will no longer be on your report.

[Anonymous]

Thanks for the info! My score just randomly went up 6 points for no reason. Now watch when those tiny balances report, it goes back down lol. I guess once those balances report next week I'll know if they helped or hurt! Definitely looking forward to a big jump when the charge offs disappear Trying to remind myself that 6 months isn't bad compared to the 7 years I've been waiting for them to fall off!

[Anonymous]

Since your utilization is alread 55% I can't imagine any more helping.

The best percentage would be at 10% or less.