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
dart00011

0 Contributions
0 People Helped
Improving my credit card utilization score
For the most part, I maintain a zero balance on my credit cards at the end of each month, and Credit Karma shows that. However, I cannot get rid of the C on my scorecard. This seems to be keeping me from going from good credit, to great. How can I improve this?

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

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
1788 Contributions
3028 People Helped

The Letter grades here on CreditKarma  are useless,  they do not have anything to do with your credit score.    it is just a  creditkarma thing.

Top Contributor
1884 Contributions
3680 People Helped

The letter grade is just a guide

maintaining a zero balance is considered average "C".

You get an "A" when creditors get to make money (Interest). So you want to show that creditors actually have a chance to make some money off of you.  To get an "A" you need to show 1 to 20% utilization.  yes that means carrying a balance.  

Its better to keep it as close to 1% of course, so to do that I pay all but a couple of bucks off every month.  e.g. if my Visa bill is $295.47 I'll pay $290.  The interest I might incure will be pennies, but it shows a balance utilization. 

Now the reality is that you don't have to do that all the time.   A "C", being average, is not always a bad thing.  You should know when you will be applying for new credit and bumping yourself up to an "A"  for a few of months is just good planning.  

Good luck

Results 1-2 of 2Results 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.