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Question By
22dianne

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credit utilization/balances
i know this questions had been asked over before but im new to the game and i still dont get it quite so heres the deal... is it best for credit utilization to be between 1-10 % for max scores just use it until it gets to those numbers pay the balance in full or leave a balance of 1-10% so u dont get zero percent credit utilization can some one please tell me the real deal ?

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I recommend keeping a balance of no more than 10-20% on the cards.  Never, ever over 30%.  This shows potential lenders that you know how to use credit wisely, which is what they love!  

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Reply by
Addison170

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There's no hard & fast rule, it's a matter of opinion.  I have been to a couple of Credit Repair Boot Camps (I work in that industry) and one of those experts recommended keeping a small balance to drive up your credit scores.  I've tried this method myself and I think it works.  Think about it this way -  I'm a creditor and thinking about issuing you a credit card and I look at your history.  I see you never carry a balance, which means I'll never make any money from the interest I charge you.  Why should I bother giving you a card?  What's in it for me?

 Again, this is just my opinion.  Paying off every month will not hurt your score, so do whatever you are more comfortable with.

Reply by
3dogsinthehouse

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Addison,  I agree with what you said below about a creditor not making interest money off someone that doesn't carry a balance,  but on the flip side, the creditor knows they will get their monies paid back. 

Also,  isn't there a charge to the merchant for using a credit card? If so,  every card that gets used brings money to the creditor.

Reply by
jhkny

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I'm trying to pay down CC to reduce the credit utilization before refinancing. Is it better to have a fewer credit with balances just below 30% (say 7 credit cards), and have 1 over 50%? Is it that if i have even 1 credit card that is high utilization, it'd be bad? Or high utilization across all credit limit? 

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Credit Card Utilization

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I had a zero interest card with a balance of 26% of credit limit my overall utilization rate was 6% paid card to zero when rate was due to go up and score jumped 19 points so it is important to remember they must look at utilization on a card by card basis.

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thanks alot

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for the time and help for my questions

Reply by
3dogsinthehouse

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https://www.creditkarma.com/question/pay_credit_card_in_full

There is the same question with 126 replies, that is the thread that I had read before.

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I am new to the site - have been reading the "help lines" when I can.

I read someone's reply to a similar question - "you don't get extra points for carrying a balance and paying on interest."

It was stated to pay the balance in full every month and to use the cards every month.

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Should I spend more to get more?

I've read if you want to receive credit line increases it's good to spend a lot and pay it off at the end of every month...I've also seen where some say they have nearly maxed out the card and paid it off every month.  If you do that...will that affect your utlization percentage, negatively?  Or do you use it (nearly maxed) but pay it down before the bill comes?

I'm in the process of rebuilding my credit...I have set some of my monthly bills to get autmatically debited from the credit card but was concerned about not charging anything that would be more the 30% of the limit...if I pay off the balance every month...will it affect me negatively if my balance is over 30%?

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Very confused please help!

I recently noticed that on my report, it states that I'm utilizing a huge percentage on a card that is no longer open and has been sold to a collection agency. How can a card that is not open and not in use be creating any percentage of utilization? Any advice would be greatly appreciated. I want to know what I can do and how to get this removed if I can!

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I claimed bankruptcy (chapter 7) prior to that I had a credit limit of $12K.  As soon as I claimed bankruptcy and did a deed in lieu for my home (forgiveness for the balance of the home), I began receiving offers for credit cards.  I accepted 3 offers 4 months ago.  I used close to the limit but made sure to pay the balances in full every month for 3 months.  My score went from 650 to 679 in that short time frame.  I make sure I use all the credit cards every month and at the very least pay the bulk of the balance.

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