dees2003

mslovely, you are correct that paying the balance before you receive the statement will show zero utilization. Allow the statement come in the mail/post amount due online. then PIF(pay in full). If you pay in full before they show amount due (either online or by sending you a bill), then you will not show utilization. This does not mean you must pay interest. They will post an amount due, but you will not owe interest on that amount unless you carry it to the next month's bill. So you have almost a month to pay it off interest free. So basicly, don't pay it off to early or it won't show utilization. Don't wait until they send out the next months bill or you will begin to owe interest. Hope this helps.

sneakzorz, you are correct that a 0% utilization of your credit cards will lower your score. BUT you are incorrect in the way you think this is calculated. As Lesismore46 stated, The balance reported to the credit agency is based on the amount that is on your bill when they mail it out (or post it online etc). They report it to the credit agency at this time, before you have even had a chance to pay it. As you know, If you pay it in full before the due date, no interest is accured. But as far as the credit reporting agency is concerned, this counts as utilization of your credit card.  So, suppose your limit is 1000, you charge 750, and pay it off as soon as you get your bill. This will count as 75% utilization as far as the credit reporting agency is concerned, even though no interest was accrued and you paid it off immediately. The best way to improve your utilization score in my understanding, is to use 1%-9% of your limit and PIF(pay in full) immediately when you get the bill. You don't have to carry a balance month to month and you don't ever have to pay any interest. Sorry so long. I hope this helps clear some things up.