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credit card utilization help/advice
Hi All,

Here is my situation: I recently graduated college, got a job, and I have a credit card with a $5000 credit line that I pay off every month. I have had the card for roughly 2 years, never had a balance or late payments ect.

My statement due date is the first of every month, and I roughly spend about $1700 a month on the card and pay it off in full on the 30th or 31st of the month. This normally results in a small statement amount for the next month, usually under $100 for the day or two of spending between paying off the card and when the statement reports what my balance is for the month (which would be due at the beginning of the next month). My credit score has been around 730 for a while.

In an attempt to raise my credit score, I applied for another credit card. In November I was approved by and received a card with a $9000 limit. My credit score initially jumped up to 745 with my total credit line increasing to $14,000. However, following the same methodology that I had been using, I split my monthly spending between the two cards and then paid them off on the 30th of the month. Because my total credit line is so high now, my credit card utilization dropped below 1% and knocked my credit score from 745 down to 729.

Nothing else in my credit report has changed other than the addition of this new card. From my understand, in order to get my score back up, on the 30th of the month, I should pay my cards down and have my statement balance for the next month be above $140 in order to increase my utilization. From my understanding, I shouldn't incur any interest charges since technically, that $140 would not be due until the first of the next month.

If anyone can confirm that this is the right line of thinking, and give any additional advice, I would very much appreciate it. Sorry for the length. Please let me know if anything is unclear. Thanks!

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Top Contributor
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Would not charge so much to the Credit Cards,

Always pay them in Full when you get the Statement.  ( or even make payments before the statement if you like  as I do )

Give it time,  you Credit Score won't jump up fast as you would like it

If you look at my profile you will see that I have done over the past 3 years to get my score up.

Last Year was a test on increasing the number of payments shwing on mycredit reports.

0 % utilization is ok,  have been there now for over 6 months and my score has gone up a few points. ( again different  things could happen to other folks )

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