Utilization question

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JamesTN
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Utilization question

Postby JamesTN » Sat Feb 28, 2015 9:51 pm

I got approved for the discover it student card. They report my utilization on the 4th and its due 25 days after that. My CL is 500$. So if i have understood you guys correctly, i should pay all except 25$ by the 4th then pay the 25$ off on the 6th after my utilization of 5% has been reported. Correct?


flan
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Postby flan » Sat Feb 28, 2015 10:28 pm

JamesTN wrote:I got approved for the discover it student card. They report my utilization on the 4th and its due 25 days after that. My CL is 500$. So if i have understood you guys correctly, i should pay all except 25$ by the 4th then pay the 25$ off on the 6th after my utilization of 5% has been reported. Correct?


If you're playing the utilization game, that's the way it's done. But unless you're planning on applying for credit somewhere else, there's not a whole lot of point.

JamesTN
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Postby JamesTN » Sun Mar 01, 2015 10:51 pm

I'm not currently but I will be in 6 months. Do I need to start now with it or can I wait until the month before

takeshi
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Postby takeshi » Mon Mar 02, 2015 8:58 am

Utilization is determined for the given point in time. You can generally worry about it when you're ready to app. The exception would be cases where people end up being stuck in a higher utilization bucket, requiring several months to get rebucketed.

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CarefulBuilder14
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Postby CarefulBuilder14 » Mon Mar 02, 2015 8:42 pm

While on the topic, it doesn't have to be 5%. Lower is better, as long as the amount that reports is above $0. Discover generally won't report under $2, though. So you might have a balance of $5 report, instead of $25.

I remember when I had only a $600 CL, and it was a pain to have to pay in full so frequently. I know I had the urge to have as much of the CL available as possible.

And unless there's a history of high balances, it's only the utilization that's shown when your credit is pulled that matters.
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