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Creditalicious

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Can someone please help me on credit card utilization?
Hello credit experts, I'm a newbie and I know nothing about credit cards. Consider me as if I'm a toddler when it comes to this stuff, but I'll learn!

I have a few questions:

1) If I open a new line of credit (two credit card total), does that mean my credit card utilization rate is the same amount per card? I know there's multiple school of though on what the best utilization rate is (or if it even exist), but let's go with the popular 30%. So, if I open a new line of credit, does that mean I have to utilize 30% on BOTH cards?

2) Is my credit score affected negatively if I were to stop using one card for several months and just continue to utilize 30% of the other?

3) Let's say I want to buy a computer costing $1000 and my max on credit card is $2000, but I choose to finance it for 18 months. Does that mean that my utilization rate is divided by 18 for each moth? Or is it 50% because it only matters on the first purchase of $1000?

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Top Contributor
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I think you are a little confused. Ok, first, you do not want to utilize 30% of your cards limit, where you get that is the rule that you should not use MORE than 30% of a cards credit line because if you do you get penalized with the scoring systems. You only need one card to report a small balance each month to show revolving activity, then pay it off before the due date. Credit card utilization is factored in two ways with most scoring systems, it is calculated for each card and then calculated as an overall across all cards. If you use a charge card to finance a product for 18 months, whatever the total amount is will be your utilization, it is not divided up. I hope what I said here can help clear things up a little, if you have any more questions please feel free to ask, but please take some time to do some reading on all of this, that is the best way to better your understanding.

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