@Paj315 wrote:
So I’m pretty new to the credit card thing...well credit in general. I got my first credit card in April and a score cannot even be generated for me yet.
Anyway, a couple months ago I joined a credit repair Facebook group just for further learning, in addition to reading all over these forums.
Well, yesterday someone asked a question about credit card utilization and how bad reporting a high balance would be for her score.
I chimed I’m with (at least how I understand cc scoring to work, from what I’ve learned here) the different utilization scoring levels of 8.9%, 28.9% ...88.9% and that you lose points as you cross those thresholds. And that anything over 88.9% is considered maxed.
I got totally slammed by a guy claiming to be a certified Fico coach that all that was not true and he didn’t know where i was getting my info but for no one to listen because you should def keep a 1-3% balance on every card you have for maximum scoring benefit.
I commented back about having a ding for too many cards with balances. He said that’s bs too.
So am I mistaken? Did I understand something incorrectly? Please help me understand since I’m totally new to this game!!
On the internet anyone can claim to be anything. I have no doubt your "certified FICO coach" is a fake.
With revolving accounts, the more zero balances the better, except that if no card has a balance, there is a 'ding' in some of the scoring models.
When I was newer at this this I was under the misconception that having a lot of small balances was better, and made sure each account reported a $25 balance. Then when the more experienced folks in this forum showed me the way, I abandoned that nonsense, and my scores picked up 
In FICO 8 I didn't get killed for having the small balances, but I definitely was leaving points on the table. From what I know now, I bet I was getting killed in my mortgage scores.
@Paj315 wrote:
Well, yesterday someone asked a question about credit card utilization and how bad reporting a high balance would be for her score.
The high balance can reduce scores, but an important clarification is, how high of a balance?
$250 on a $300 limit is a high utilization, but most CC profiles could pay that down in a day or so.
$25,000 on a $30,000 limit affects score in much the same way, but likely takes longer to bring down.
The part of credit that is required, is not a game, is to pay at least the minimum payment on all accounts, by the payment due date.
Everything else about credit is a series of choices we make, both about opening credit, and how much balance to carry. So there are several “game” aspects to it.
All Cards Zero Except One is a game people play to optimize their scores. The understanding that there are scoring thresholds in utilization levels is a way of gaming those to improve scores. Opening a share secured loan for $500 instead of buying a new car is a game to improve score.
As long as one does not lose sight of the requirements, paying on time, and has a plan for how to pay for their debt ( very individual situation ) there is nothing wrong with the rest of that persons choices about how to use credit, and nothing wrong with gaming the scoring in your favor.
