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How can my Open Credit Card Utilization grade be a C, if it's 0%?
How can my Open Credit Card Utilization grade be a C, if my debt is zero and my Credit Card Limit is $39,000?
Asked by
MyCr99
1 year ago
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Credit cards are revolving credit. If you use a card monthly, even if it is just for a small purchase paid off immediately (before 30 days when interest will accrue) it shows your ability to pay off debt. It is not necessarily a "c" in real life as apposed to credit karma's letter grades but lenders will tend to favor someone who uses and pays their credit off according to the scheduled agreement.
Kensington22 1 year ago
Thanks for the info. So, it sounds like I would get an "A", if I had a Credit Card Utlization around 5%. 5% would represent that I'm using my credit card (paying balance off within 30 days), and not borrowing too much in relation to my availbale credit. And, in turn, wouldn't this improve my overall credit score?
MyCr99 1 year ago
My Credit Karma score for Open Credit Card Utilization is a "C" at 0% utilization...I pay my balance down every month before interest accrues. This is the best possible scenario right? At least as far as lendors are concerned? So why does it seem to have no effect, either positive or negative, on my overall credit score? I have no other debts or delinquent acounts, no other credit cards, no issues that I know of. Seems like if I have a record of paying my balance every month, that should increase my score over time? Can anyone explain the situation to me?
mjxx 6 months ago