Doug1as

2 Contributions 46 People Helped

Member Since: October 2011

Most Helpful Contribution

The Relationship Between Your Credit Score and Credit Card Utilization Rate

Jun 24, 2015
Helpful to 46 out of 51 people

Thanks for your insight Dbatl2012. I just wanted to expand and share some issues most people don't know about. i used to own an electronics store and many years later I sold it. The reason banks LOVE you for using their cards frequently is because the STORE has to pay between 2% and 4.5% when the card is swiped. Corporate cards are even worse and add 1% or 2% more to the transaction. Discover and AmEx are both extremely high percentage cards. That's why you often see stores, especially small ones, that only take Visa and Mastercard. The percentages don't sound like much but for example: your purchase is $100 and the corp. card charges the store 5%, the store just paid $5.00. Now your purchase is $1000 so the store pays $50.00. Then your CC adds salt ot the wound and charges you interest. Set your cards on autopay for the minimum if you have to or if you have problems keeping track of due dates. If you want to pay more then go for it. If you can't add any extra then you just let your CC autopay do the job for you. Of course you're paying the minimum but you don't ever have to worrry about forgetting. If you don't have the money to pay the minimum and you don't want a bounced transaction added to the mess, then just turn off autopay. The autopay option is only for those who pay online but it certainly helps if you tend to lose track of the days and you have several cards. I hope this helps people understand one of the reasons your CC wants you to use your card as often as possible. You can help the smaller stores out if you're paying with your Debit Visa or Debit Mastercard. If you use it as a Debit Card and just enter your PIN, the store will only have to pay $0.25 to $1.00. NO! THE STORE DOESN'T AND CAN'T KEEP TRACK OF YOUR PIN. There are tons of laws against that and the PIN NEVER shows up on any report the store has. Please don't make the "Small Guy/Gal" pay 4% when it could only cost a quarter. Support the small stores when you can. Thanks and good luck folks!

Activity (2 Total Contributions)

The Relationship Between Your Credit Score and Credit Card Utilization Rate

Jun 24, 2015
Helpful to 46 out of 51 people

Thanks for your insight Dbatl2012. I just wanted to expand and share some issues most people don't know about. i used to own an electronics store and many years later I sold it. The reason banks LOVE you for using their cards frequently is because the STORE has to pay between 2% and 4.5% when the card is swiped. Corporate cards are even worse and add 1% or 2% more to the transaction. Discover and AmEx are both extremely high percentage cards. That's why you often see stores, especially small ones, that only take Visa and Mastercard. The percentages don't sound like much but for example: your purchase is $100 and the corp. card charges the store 5%, the store just paid $5.00. Now your purchase is $1000 so the store pays $50.00. Then your CC adds salt ot the wound and charges you interest. Set your cards on autopay for the minimum if you have to or if you have problems keeping track of due dates. If you want to pay more then go for it. If you can't add any extra then you just let your CC autopay do the job for you. Of course you're paying the minimum but you don't ever have to worrry about forgetting. If you don't have the money to pay the minimum and you don't want a bounced transaction added to the mess, then just turn off autopay. The autopay option is only for those who pay online but it certainly helps if you tend to lose track of the days and you have several cards. I hope this helps people understand one of the reasons your CC wants you to use your card as often as possible. You can help the smaller stores out if you're paying with your Debit Visa or Debit Mastercard. If you use it as a Debit Card and just enter your PIN, the store will only have to pay $0.25 to $1.00. NO! THE STORE DOESN'T AND CAN'T KEEP TRACK OF YOUR PIN. There are tons of laws against that and the PIN NEVER shows up on any report the store has. Please don't make the "Small Guy/Gal" pay 4% when it could only cost a quarter. Support the small stores when you can. Thanks and good luck folks!

Credit card utilization and your credit score

May 17, 2014

Thank you for a really tangible formula / way to view using the cards and looking at the limits. I was only using one card and paying it off each month but then I just noticed it actually hurt my score this month because I paid off a hospital bill with the card just so I had a simple record I could view in the future if needed. Now I know I need to spread the cards around if I use them at all. Live and learn.

Thanks again,

Doug R., Memphis, TN