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2 CC Utilization

tag
Anonymous
Not applicable

2 CC Utilization

Freedom and AMEX BCP. Should I PIF for AMEX (advice on this board) and leave $1 on the Freedom every month? Or PIF for both since I don't have 3 CC yet?
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1 REPLY 1
NRB525
Super Contributor

Re: 2 CC Utilization

What is your intended timing of the pay in full? Prior to statement cut? If so, and you pay both "in full" prior to statement cut, they will both report zero at the same time, and you will likely get a reduction in your score.

 

If your timing of PIF is paying by the payment due date, and the statement reports a balance, that is more natural. Getting cards to zero prior to statement cut takes a bit of extra effort. Some find it helpful, but if you track your scores closely, it is unlikely to amount to a significant number of points gained. Like, less than 10 compared to just keeping utilization under control.

 

If by "leave $1 on the Freedom every month" you mean you want to pay short at the payment due date so $1 is unpaid, you will trigger interest cost going forward on all your new charges on the Freedom, and you probably don't want that.

 

What are the credit limits on each card?

How long have you had each of these two cards?

 

Are you planning on applying for anything in the next two months? If not, then the effort to micromanage is going to result in a slight score increase that no one except you cares about.

 

And as a final commentary, if it were me, I'd leave them report whatever you charge on them, not go over the credit limit, and pay in full by the payment due date to avoid interest costs.

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
April 2022 EQ=811 TU=807 EX=805 - TU VS 3.0 765
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