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iamloscar

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Credit Card Utilization???
What is meant by credit card utilization?? Is it how often i use my credit card? Does it depend on what i use it for? Should i be using all the money availiable at once? I hope not. But, does it?

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Dropping knowledge

No. Your credit utilization is the percent of used credit present at the end of your billing cycle. I have a capital one platinum card cl $500. I can completely max out this card with purchases of any kind. BUT before the due date I always calculate a payment that will leave 15-25% utilization. 

Example: Cl $500. I made several purchases throughout the month leaving a current available balance of $80. My due date is 8/2, so I will make a payment of $425, leaving an open balance of $75 aka 15% utilization at the end of the billing cycle.

hope that made sense to you! 

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Utilization is what percentage of your available credit (the total credit limits you have) that you have used in a month. Ideally, it is 9% or lower.  What you want to go for in credit card usage is being able to pay off in full whatever you charged during the month when the bill comes in. The topic of usage is covered very well in the articles on this site, so I suggest finding that and enjoying the learning process since that is what Credit Karma is here for.

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