Credit Advice

Credit card utilization is a metric often used in credit scoring algorithms. It is a consumer's credit card balances divided by their credit card limits. The resulting range of 0%-100% (although it could be higher or lower if you are over limit or have a credit) is a component used by most of the credit scoring models. Generally speaking, the higher your credit card utilization, the lower your credit score.

In recent times, credit card utilization has become a popular discussion topic since it is a simple way to impact your credit score. For example, having a single credit card with 100% utilization ("maxxed out") could lower your credit score. Spreading out the balance across multiple cards is an easy change that could help improve your overall credit profile in the eyes of a lender.

Great..!!! it was really helpful. 

Why do I have a grade of C on my credit report card when I have a 0 balance on my credit cards ?

What its saying to me is that I should be using my credit card often but pay off the balance every month, instead of using cash all the time..

please correct me if I'm wrong 

"I know exactly why you got C. You might have had 0 balance at the time when Credit card Statement was prepared."

Should you not pay off the things you charged during the month BEFORE the statement is prepared to avoid having to pay the interest charges? 

Use your card, pay most of it off before the statement, BUT leave less than 10% until the statement arrives.

So say I have a limit of $1000.  I spend $400 that month.  So I should pay off a little over $300 of it, so that when the bill comes, I owe $99 (9.9%).  This will show up on your credit report as 9.9% utilization of that card, which is good.  Anywhere between 1% and 10% is good.  0% makes it seem like you're not using the card at all, which will generally give you a lower score than 1%.  Then after the bill comes, be sure to pay it all off in full, so you don't have to incur any interest.

Or, if you prefer to not use the card very much at all and just use cash for most things, just use it for one or two very small purchases each month.  That way, when the bill comes it will only be for $10 or so (1%, with $1000 limit), and you can just pay it off when the bill comes.

The only thing I don't understand is what counts towards your "Total Credit". For example, I have 3 different credit card status'

1) Active Account

2) Closed Account

3) Suspended Account - By this, I mean that I have a balance that I am paying off and it shows a credit limit (higher then the balance). These are from "Opting Out" when the card company went to raise my interest so they kept the old interest and suspended the account. So each bank considers this closed and it will be completely once they are paid off. 

So I have compared my TansUnion credit report to what Credit Karma has for my "Total Credit" and it doesn't add up. It is definately higher then my open accounts but using all of either the closed account or suspended ones doesn't add up either. What is stranger [to me], is that my Total Credit was just reduced but I can only figure [from looking at the numbers] that it was from an account that was CLOSED 3 years ago!?!?