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!


Posted in Credit Cards
Profile Image

Question By

2 Contributions
0 People Helped
What is considered 1% Utilization?
A little bit of a background on myself i have around 50k in credit cards and I have worked my way down from a 60% utilization rate from being in college. I have just made my last payment last month to bring me to a 0% Credit Card utilization. My score had dropped since I went into the C grade(which I knew would happen but I wanted them paid for the first time in 5 years) My question is now to get back into the A grade to maintain my credit score I need 1% utilization at the reporting date what is 1%? 1% is $500 of my total limit. I do not want to spend $500 a month on credit cards all of my monthly bills have to be paid through my bank account they will not accept credit cards. Can i get away with $250(.5%)? Will that round up to 1% for reporting purchases or can I just have a $100(or less) balance so it's just not 0% and that will trigger the "A" grade of one percent. I can figure this out of my own through trial and error thought it would take months but I'm willing to do it. Hopefully someone has already done this work for me thank you for reading.

TL;DR version: What is the lowest balance i can carry on my credit cards(with a total limit of $50,000) to be out of the 0%(C grade) credit utilization bracket?

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

View your scores and reports anytime.


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.