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Question By
acrouch94

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Credit Card Utilization Rate Help
I just recently got approved for the Capital One Platinum card, and I am trying to figure something out about credit card utilization rates. I read that keeping your rate from 1-9% is the best. I also read that credit card companies report your rate once a month usually on a fixed date every month. So, if I purchase something for say 27% of my total, and pay it down to say between 4-7%, and then wait for the credit card company to report that rate, will it help raise my score more? Or, does it not make any difference? Or, is there something I'm missing? I'm looking for any help at all to improve my score.

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No it will not, " will it help raise my score more?"

1) you never want to carry a balance on your Credit card. 

2) PAY your Credit Card Accounts off IN FULL every Month  no exceptions.

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It can; but it can be tricky and you need to keep on top of it. As Howie states, never carry a balance where you're paying interest. I use my credit cards for almost all my monthly expenses and pay the balances before the due dates. I don't charge more than I can pay off. I recently received a new rewards credit card with a lower limit than I normally receive so have been charging and then paying the balance down/off weekly. You need to be careful because credit card companies watch your expenditures and where your money is spent. American Express does this. They watch if you charge a lot at hotels/casinos and will decrease your spending limit if they feel uncomfortable. 

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Reply by
mindjazz

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Also, this type of utilization will depend how many cards you have with total credit availability. If you have the one card and are using 27% then this can be a red flag to credit lenders. If you're charging 27% on one card but have an overall credit limit to offset; then the lenders don't always view it as harshly. 

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