Jump to content

Please use the Feedback forum for questions about the upgrade.  We will get to them as quickly as possible.

 

Jowolfsburg

Credit Utilization and interest.

Recommended Posts

Good afternoon. 

 

Is there a way to keep your credit card utilization between 1-7% without paying interest on your credit card by leaving a balance? 

Share this post


Link to post
Share on other sites
1 hour ago, Jowolfsburg said:

Good afternoon. 

 

Is there a way to keep your credit card utilization between 1-7% without paying interest on your credit card by leaving a balance? 

Unless you have one of the fee-sucker cards from First PREMIER or Credit One, you don't pay interest if you pay the statement balance in full before the due date every single time.  

 

It doesn't matter whether your statement balance is $1.06 or $600,000.01.  It matters when the balance is paid.

 

Share this post


Link to post
Share on other sites
3 hours ago, RocketGoBoom said:

Use a credit card that has an intro deal for 0% on purchases. 

That has nothing to do with it. 

Share this post


Link to post
Share on other sites
2 hours ago, cv91915 said:

Unless you have one of the fee-sucker cards from First PREMIER or Credit One, you don't pay interest if you pay the statement balance in full before the due date every single time.  

 

It doesn't matter whether your statement balance is $1.06 or $600,000.01.  It matters when the balance is paid.

 

This. Only let one card report with a small balance (pay the rest before the statement cuts) and then pay the last card on the due date. Never pay a dime in interest. 

Share this post


Link to post
Share on other sites
2 hours ago, shifter said:

This. Only let one card report with a small balance (pay the rest before the statement cuts) and then pay the last card on the due date. Never pay a dime in interest. 

Thanks for the reply. The only thing that confuses me about this is my cards usually report on the day interest is charged. So basically if I pay it off before it’s reported the utilization will be 0%. I hear it’s more beneficial for your score for it to report between 1-7%

Share this post


Link to post
Share on other sites

That means you are or were carrying a balance. You need to pay your balance in full to reset the clock. Ideally you would pay it below $0 before the next statement cuts to cover any trailing interest. Then you can start using it again normally after the statement cuts. 

 

Or you have subprime scum cards that have no grace period. Which cards? 

Share this post


Link to post
Share on other sites
6 hours ago, Jowolfsburg said:

Thanks for the reply. The only thing that confuses me about this is my cards usually report on the day interest is charged. So basically if I pay it off before it’s reported the utilization will be 0%. I hear it’s more beneficial for your score for it to report between 1-7%

I think you might be confusing "Interest" with "Utilization".

 

This is probably because any interest you're paying will post to the account on the account cycle closing date, (ignore this because it's irrelevant to what you seem to want).

 

If you want an account to report between 1-7% Utilization, simply pay this account to that point immediately prior to the account cycle date.

 

If you're trying to maximize the Utilization component of your FICO score, search this board for "$2 trick"  

Share this post


Link to post
Share on other sites
9 hours ago, shifter said:

That means you are or were carrying a balance. You need to pay your balance in full to reset the clock. Ideally you would pay it below $0 before the next statement cuts to cover any trailing interest. Then you can start using it again normally after the statement cuts. 

 

Or you have subprime scum cards that have no grace period. Which cards? 

Basically have a couple of chase cards. None subprime. 

Share this post


Link to post
Share on other sites

If you only pay the minimum one month, you will forever lose the grace period until you zero out the balance before the statement cuts. 

Share this post


Link to post
Share on other sites
17 hours ago, Jowolfsburg said:

Is there a way to keep your credit card utilization between 1-7% without paying interest on your credit card by leaving a balance? 

Not if you leave (i.e. carry) a balance.  Be aware of the difference between having a balance report and carrying a balance.  You don't have to carry a balance to have one report.  If you pay the statement balance in full after statement date & by the due date then a balance will have reported on the statement date as indicated above.

Edited by takeshi

Share this post


Link to post
Share on other sites
3 hours ago, Chris58 said:

I think you might be confusing "Interest" with "Utilization".

 

This is probably because any interest you're paying will post to the account on the account cycle closing date, (ignore this because it's irrelevant to what you seem to want).

 

If you want an account to report between 1-7% Utilization, simply pay this account to that point immediately prior to the account cycle date.

 

If you're trying to maximize the Utilization component of your FICO score, search this board for "$2 trick"  

Thank you, will do.  I’m really just trying to maximize my scores.  I can literally pay the balance every month, But I hear having 0% utilization which is great is not the very best option. I may be wrong on that. 

Share this post


Link to post
Share on other sites
38 minutes ago, Jowolfsburg said:

Thank you, will do.  I’m really just trying to maximize my scores.  I can literally pay the balance every month, But I hear having 0% utilization which is great is not the very best option. I may be wrong on that. 

For score optimization leave $2 reporting on one card (and $0 reporting on all the others).  If you don't have clean reports you may not notice a big difference.

Share this post


Link to post
Share on other sites
On 7/19/2018 at 9:07 AM, cv91915 said:

For score optimization leave $2 reporting on one card (and $0 reporting on all the others).  If you don't have clean reports you may not notice a big difference.

 

If you HAVE clean reports, and a reasonably well established history (say 3 yrs average age), there's as good chance that you don't have to sweat modest utilization.

 

I report something like $30k+ in carried revolving balances each month (about $20k+ on 0% bt offers, and about $8k of new charges that will be PIF next month).  Thanks to roughly $700k in credit lines, my utilization ratio runs 4%-5% each month.  That drops my FICO's into the low 800's  Good enough for me.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Today's Birthdays

    1. LKH
      LKH
      Age: 24
  • Member Statistics

    • Total Members
      174,344
    • Most Online
      1,528

    Newest Member
    themvp07
    Joined

About Us

Since 2003, creditboards.com has helped thousands of people repair their credit, force abusive collection agents to follow the law, ensure proper reporting by credit reporting agencies, and provided financial education to help avoid the pitfalls that can lead to negative tradelines.
×

Important Information

Guidelines