Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Scores
Profile Image

Question By
cvonbee

0 Contributions
0 People Helped
I currently have 4% utilization on my credit cards, should that be spread among them?
I really only want to use my debit card due to a (slight) lack of restraint when I carry my credit cards around, so I plan on lowering that number even further by just having some monthly subscriptions charged to 1 card. I know that high utilization of a single card can be detrimental to your score, but can low utilization of all but one card be negative too?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
1884 Contributions
3678 People Helped

If you want to show utilization.

But don't want to carry your cards ( which is a very good idea BTW)  put a recurring charge on a particular card. something that your going to pay any way,  put your phone bill on one card, your electric bill on another, cable bill on another,  you get the idea.  Then put the cards away. Pay the bill when it comes in.   Your showing utilization with money that you already have budgeted.  

Keep one card in your wallet for emergencies, keep it in a pocket that's out of sight so your not tempted to grab it 

Never carry balances on Store cards,  never charge to a card when you don't know how and when it will be paid. 

Good luck 

Top Contributor

Reply by
EddyTX

1884 Contributions
3678 People Helped

forgot to mention. 

4% is not bad. Zero is worse. Creditors like to think they can make money off you. 

5-10% is ideal. weather that's on 1 card or spread out over several makes little difference.  I currently have 64% utilization on one card, a 0% for 16 months Visa that I used for a vacation and christmas.  I also have 3 cards with 0 balances and 3 with balances below $100.   But my overall utilization is 21%.  

When you plan large purchases you should know how long it will take to pay it off and that your score will be a bit lower because of it for a while. 

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.