Generally, the theory is correct that everyone talks about. But the truth is that every lender is different, and at any given time they'll make decisions that seem like they make sense, then a lot that don't.
Putting a lot of use on the card means using or pushing your credit limit, then paying off, triggering the lender to increase it. Or sometimes it's using certain amounts, PIF, then using more, PIF, all in the same cycle.
With your $1500 and the example of those limits, there is only so much you can do. Obviously, you wouldn't push any of the limits in this scenario. That does not mean you won't get increase. As long as you keep the spend steady and show you can manage it, you'll still get a CLI at some point. Many people get consistent increase not putting a ton of use on a card.
Putting a lot of use on the card means using or pushing your credit limit, then paying off, triggering the lender to increase it. Or sometimes it's using certain amounts, PIF, then using more, PIF, all in the same cycle.
With your $1500 and the example of those limits, there is only so much you can do. Obviously, you wouldn't push any of the limits in this scenario. That does not mean you won't get increase. As long as you keep the spend steady and show you can manage it, you'll still get a CLI at some point. Many people get consistent increase not putting a ton of use on a card.
@Anonymous wrote:So I've read a bunch of threads on here that give advice on rotating credit card use, advice on how to maximize FICO scores with credit card use and advice on how to maximize CLI's with heavy CC use. I get the basics such has PIF on all cards or all but 1 card, and to let the 1 card report 1-9% of it's CL for maximum FICO return over time, and also switching up (rotating) which card you leave that 1-9% balance on. A lot of people say that when trying to achive healthy size CLI's certain CC companies (most) seem to "like heavy usage" on the card.
A couple of questions. What constitutes "heavy usage" on a card? Is it just based on dollars that flow through it monthly, amount of transactions posted to the card, a percentage of CL used (and paid) each month or somehow a combination of all these factors?
Just to assign some sort of numbers to this example and help me understand, let's say I've got 3 credit cards total and their CL's are $5k, $10k ad $15k. On average I plan to cycle $1500/mo consistently between these 3 cards which makes up normal monthly bills and monthly expenses. I'm not going to factor in those big periodic expenses like dropping $3k on a TV or something. With this $1500, can someone give me some sort of target breakdown that would both maximize FICO scores while also setting myself up for the best potential CLI's in the upcoming months to year?
I could evenly use all 3, say around 10 transations on each monthly for around $500 of usage on each card per month. PIF on all of them or leave a small balance on one.
OR, I could not use 2 of them at all once month and run $1500 through just 1 card and PIF. The next month do the same thing just with a different card. Same thing month 3.
OR, I could run 2-3 transactions of $100 total or so across 2 cards and run the remaining $1300 through the final card. PIF everything, then switch up the one that gets the most usage.
Lots of options. And I'm sure I'm over thinking this and in the grand scheme of things it probably isn't going to constitute a significant difference in FICO scores and/or CLI potential.
Those that understand this stuff far better than I do, using those numbers as an example, what would your suggestions be for best results?
The best way to use $1500 month in 3 accounts to accomplish the twin goal of high scores and getting CLI's would be to run 500 month through each account, making sure 2 of the 3 accounts are paid off before statement date and report a zero balance, while the 3rd account reports a balance but not more than 9% of the credit limit.
@Anonymous wrote:Gotcha. So basically, equal, consistent usage is better than heavier on one and next to nothing on others to accomplish my goals. Thank you.
Yes but for scoring purposes you want to make sure that 2 accounts report a zero balance on statement date.
@SouthJamaica wrote:
@Anonymous wrote:Gotcha. So basically, equal, consistent usage is better than heavier on one and next to nothing on others to accomplish my goals. Thank you.
Yes but for scoring purposes you want to make sure that 2 accounts report a zero balance on statement date.
To be clear, that's when an application is being made. During the typical non-application period, doesn't matter. Utilization is just instant-in-time: I pretty it up pre-application and don't sweat it otherwise but I also don't make that many unplanned applications either (7% and both of those were surprise pre-qualified business CC's).
If one follows the typical financial advice of don't spend more than you make, usually won't be in a bad place from a reported balances perspective, or at least anyone who's been on this forum for a year or longer call it 
.
