NotInUseKAS

1 Contributions 186 People Helped

Member Since: July 2012

Most Helpful Contribution

Credit card utilization and your credit score

May 10, 2013
Helpful to 186 out of 212 people

This article states that you can pay off your revolving accounts monthly and still show activity and have a good rating, but then it states that 0% utilization is also bad. I spend thousands of dollars on my revolving credit cards every month but I pay it in full each month which should be the epitome of responsible spending; however, my utilization shows as 0%, negatively affecting my credit score. This article contradicts itself in that way and I am not willing to pay unneccesary interest on revolving balances just to increase my utilization, so I am being punished for being responsible which is silly. This article makes it sound as though if you use your credit regularly but pay the entire balance each month it will still reflect in your utilization but that is just not true, or at least it hasn't been for me. 

Activity (1 Total Contributions)

Credit card utilization and your credit score

May 10, 2013
Helpful to 186 out of 212 people

This article states that you can pay off your revolving accounts monthly and still show activity and have a good rating, but then it states that 0% utilization is also bad. I spend thousands of dollars on my revolving credit cards every month but I pay it in full each month which should be the epitome of responsible spending; however, my utilization shows as 0%, negatively affecting my credit score. This article contradicts itself in that way and I am not willing to pay unneccesary interest on revolving balances just to increase my utilization, so I am being punished for being responsible which is silly. This article makes it sound as though if you use your credit regularly but pay the entire balance each month it will still reflect in your utilization but that is just not true, or at least it hasn't been for me.