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Question By
brymanks

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Open Credit Card Utilization?
My CreditKarma Score is 726 "B" while my Vantage score is 952 "A". In the detail of my CK report it shows my Open Credit Card utilization score as a "C". It is 0% with open credit card balances of $176 and credit card limit of over $90,000.How can I have a "C" when I only owe $176 with credit card limits of $91,000? I've never owed over 20% of my limit in the past 2 years. I use my credit cards monthly.

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The problem is you're paying your balance off before you receive your statement. Doing that  will give you 0% utilization. Instead, pay down your balance so that you have around 20% by the closing date. Wait for your statement will come (it should reflect a balance to be paid) and THEN you pay off your remaining balance before the next due date.

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Low credit utilization is actually a negative for CreditKarma because it doesn't show "active" use of credit. If you look at the distribution, 0% is a "C". I think rounding affects it as well (.001%?).

Reply by
brymanks

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I suspect that may be the case, however I probably charge $2,000+ each month but frequently pay off before I'm even statemented.

Thanks,

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