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Question By
nctrevor24

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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?

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