@Anonymous wrote:
@Anonymous wrote:
It's just simple math rather than 8.9% to figure out off the top of your head. 10% of 15K is $1500.... 8.9% takes more thought to figure out when planning a purchase.
My point is simply that one doesn't have to limit purchases to 10% of their limit, simply their reported balance if their goal is to keep utilization in a great place.
Or, using the method conversely could push the person to have a 70K CL and then purchase the 7K TV and not have to worry about a scoring utilization blowout.
Having those silly high limits and using them accordingly is probably why banks hand them out when you limit yourself to 10% of the limit 99% of the time. Not only does it keep your scores higher but, it shows you can manage a large CL. Being selective in where you put spend is better than being impulsive and just using it because it's there.
There's always the outlier though where you have a great promotion on rewards for a particular card that doesn't have the right CL for balancing the UTIL based on the purchase where you either pre-pay part of the balance before the statement or you take the temporary hit for a month before autopay kills the balance.
