Hi
I am trying to figure out this credit utilization percentage. I just opened up 2 credit cards
1.) $300.00
2.) 500.00 ( no interest).
How much of each do I use ? or keep them at zero balance?
&
Also, should I let it report a balance or make sure I pay the whole balance.
Thanks for anyone's help in advance! Appreciate it!
@Anonymous wrote:Hi
I am trying to figure out this credit utilization percentage. I just opened up 2 credit cards
1.) $300.00
2.) 500.00 ( no interest).
How much of each do I use ? or keep them at zero balance?
&
Also, should I let it report a balance or make sure I pay the whole balance.
Thanks for anyone's help in advance! Appreciate it!
Everyone's situation is different and there is no one size fits all approach to this but what seems to work well for most people is to have only one of their cards report a small (<9% of it's credit limit) balance each month and then pay in full before the due date. You can use it as much as you want during the month but what's important is the reported balance because for most cards whatever is reported on the monthly statement is what is used to calculate utilization for the month.
You might have to play around with the percentages for a few months to see what works best for you. Some people say that 1-3% utilization helps the most. For others it might be 5-9%. As I said it's not one size fits all.
On any other cards always try and have them report a zero balance each month. That doesn't mean you can't use them just make sure that the desired zero balance on these accounts is achieved several days before their statements post.
From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782
"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".
Ok. So I will call tomorrow and figure out when the statement goes out. Thank you.
P.s. Impressive scores by the way! Congrats!!
