Utilization questions 1% vs 0% Overall utilization vs particular utilization.

[Anonymous]

Hey everyone,
I just have some questions about utilization. I currently have 8 credit cards, 7 of them are paid in full with a zero balance and one of them has $2600 on it out of a $3000 Credit Limit. I have heard conflicting information about utilization.
I am wondering if it is better to have zero utilization reported on the statement or at least 1% maybe even 5%? I paid off all but one credit card this month and am planning on asking for several credit line increases around the 1st of January when all the statements cut.
I'm wondering if I should utilize a little bit of my cards at least? rather than zero? I am also wondering if the utilization on the card with $2,600 is that going to hurt me because the utilization on that particular card is high? Also, last months utilization was extremely high at 80%. It's not like I never use the cards and then I'm asking for a CLI. Obviously I know there's not an overall magic answer that's good for everybody, I'm just trying to get the best scores possible to ask for all my increases. Thank you! :-)

[Anonymous]

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@Anonymous wrote:
Hey everyone,
I just have some questions about utilization. I currently have 8 credit cards, 7 of them are paid in full with a zero balance and one of them has $2600 on it out of a $3000 Credit Limit. I have heard conflicting information about utilization.
I am wondering if it is better to have zero utilization reported on the statement or at least 1% maybe even 5%? I paid off all but one credit card this month and am planning on asking for several credit line increases around the 1st of January when all the statements cut.
I'm wondering if I should utilize a little bit of my cards at least? rather than zero? I am also wondering if the utilization on the card with $2,600 is that going to hurt me because the utilization on that particular card is high? Also, last months utilization was extremely high at 80%. It's not like I never use the cards and then I'm asking for a CLI. Obviously I know there's not an overall magic answer that's good for everybody, I'm just trying to get the best scores possible to ask for all my increases. Thank you! :-)

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One thing that is not good is having 86% utilization on one card, regardless of the other cards. Some members credit profile can handle this without a blip and others can not. That being said, paying that card down will reduce utilization and score impact. 

[Anonymous]

Thanks for the comment. I'm thinking you're right. I'll probably make at least another $1000 payment. It's at 0% til June so I wanted to take advantage of that for now.

[Anonymous]

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@Anonymous wrote:
Thanks for the comment. I'm thinking you're right. I'll probably make at least another $1000 payment. It's at 0% til June so I wanted to take advantage of that for now.

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Now that I completely understand! Even with zero percent, the credit bureaus don't care and it will impact your score. Again, though, if it doesn't matter, don't worry about it.

Below 30% is a pretty good standard for not causing a problem with your score. At least it has been for me.

[Anonymous]

Yes. I know they don't care. Overall I'm below 30% I am also wondering if reporting something I.E. 1%-5% is better than reporting 0% utilization?

[OmarGB9]

Yes reporting small UTIL is far better than reporting 0% UTIL (because then it looks like you don't use your cards at all; even if that's not the case).

[olehammer]

UTIL doesn't have a memory so if you're not looking to apply for more credit just split that $2600 into 6 equal payments and work it down before the 0% expires.

If you are looking for more credit you'll Max your score getting that card below 20% leaving all other balances at zero.

[SouthJamaica]

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@Anonymous wrote:
Hey everyone,
I just have some questions about utilization. I currently have 8 credit cards, 7 of them are paid in full with a zero balance and one of them has $2600 on it out of a $3000 Credit Limit. I have heard conflicting information about utilization.
I am wondering if it is better to have zero utilization reported on the statement or at least 1% maybe even 5%? I paid off all but one credit card this month and am planning on asking for several credit line increases around the 1st of January when all the statements cut.
I'm wondering if I should utilize a little bit of my cards at least? rather than zero? I am also wondering if the utilization on the card with $2,600 is that going to hurt me because the utilization on that particular card is high? Also, last months utilization was extremely high at 80%. It's not like I never use the cards and then I'm asking for a CLI. Obviously I know there's not an overall magic answer that's good for everybody, I'm just trying to get the best scores possible to ask for all my increases. Thank you! :-)

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Here's one "magic overall answer": don't let any account report 50% or more. Get rid of that $2600 balance immediately, get it under $1500, preferably under $300.

[NRB525]

1) If you have 0% APR for several more months, set a payment rate to be at $0 by then and enjoy the interest cost savings.

2) When pursuing CLI, showing more utilization on this card, with payments, likely helps with future CLI requests on this card.

3) High utilization on one card  does bring your score down a few points, but it's not life-threatening.  See #2 above.

4) Never have all cards at zero at the same time. Always have at least one card with a balance. Or in my case, 20.

5) The CLI you are looking at are likely SP, which means you can't be certain when the last SP was actually taken.

FWIW, I would leave the amount on the 0% card and pay down over 5 months or so.