What can I do for a high utilization reporting?

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forrestst
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What can I do for a high utilization reporting?

Postby forrestst » Sun Dec 04, 2016 12:17 pm

I get so much conflicting advise from so many different people, I can never remember who told me to do what. When you have 2 $300 limit cards, it's almost nearly impossible. This month I made a serious mistake and charged $278 but forgot to pay it off before the balance reported, I received an email that my statement was ready to view and I received a notification from Credit Karma that my utilization was excessively high and this was keeping my credit score down.

I also have a Capital One card with a $300 limit and a balance of $90 will report in 2 days. Would it be better to pay the $90 now and let a $0 balance report or just let the $90 balance report?

My main goal is to get my First National Bank of Omaha card unsecured which may not happen any time soon. When I applied for the Capital One card, they showed my FICO 8 score was 640 or so. Next month my score was 619 and now it's showing as 612. FNBO pulls my FICO score around the 8th and it usually updates on my portal around the 20th. On their last update Capital One is showing me my score is 639 while CK is showing 624.

Would it increase my sore more if I only charge $10 on each card then forget about them until they report? What I have been doing is just using my cards for normal purchases then paying off the balance during the grace period. I was told to send my payment before the statement cuts so a $0 balance reports but I missed it this time and I'm not sure I like playing this game.
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Tubpbs
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Re: What can I do for a high utilization reporting?

Postby Tubpbs » Sun Dec 04, 2016 10:44 pm

Having $10 report on each card each month would yield the best results in terms of scores.

$0 is viewed as a slight negative. $278 out of $300 is a legitimate negative.

Your scores will react immediately to a change in reported utilization.
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rockyrock
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Re: What can I do for a high utilization reporting?

Postby rockyrock » Mon Dec 05, 2016 8:51 am

I wouldn't sweat the reporting yet, sounds like you need to work on your payment history.

Like tubpbs said, you are never more than one cycle away from a utilization report.

A higher CL would work on your behalf too. I always had the best luck getting CLI's when I was using the card daily and making multiple payments a month. I had a card that I effectively maxed out and paid off two or three times a month. After several months of this activity I called and said I was tired of making so many payments would you please give me a CLI. That and about six months of previous good payment history with them got me from $1500 to $4250--she offered higher but I didn't need it at the time so I declined.

Good luck and YMMV.
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forrestst
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Re: What can I do for a high utilization reporting?

Postby forrestst » Mon Dec 05, 2016 1:11 pm

I've always paid the bill every month on both these cards and my balance was $0 on both. What happened was I needed to make a purchase for $278 and my debit card has a $200 daily limit. They will raise your daily limit if you call during business hours, but I waited too long to make the purchase and something timed out and my limit went back down to $200. It was now after banking hours so they told me I would have to try again tomorrow.

I thought I could use the FNBO card to make the purchase then send an online payment as soon as I got home, but when I logged in, my balance was showing as $0. I was going to check back the next day but I forgot then my statement cut with the high utilization. I'll pay both cards to $0 this week but it appears too late to help with utilization and my credit score keeps going down.

The FNBO is a secured card, I checked and if I want to add another $200, the do a hard pull on my credit. It looks like I'm stuck with the $300 limit and it seems they hold your money hostage until they are good and ready to give it back. I've considered cancelling the card as then I'd have my $300 to use and wouldn't have to be concerned with utilization. As for the Cap1 card, after I pay this statement, I will have 3 statements paid on time then after 5 statements paid on time they said they would increase my CL to $500. It's my understanding that's the only chance at getting a CLI that I will ever get.

As we know, both cards are garbage and will eventually need to be closed. I may just have to go back to carrying a wad of cash and forget about these cards.

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kcm7
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Re: What can I do for a high utilization reporting?

Postby kcm7 » Mon Dec 05, 2016 1:27 pm

Yeah, it can be hard keeping util low when your limits are so low. The "make multiple payments a month" advice technically works, but as you just proved, it can be hard to do in reality.

Is the debit card you mentioned (with the daily $200 limit) the only debit card you have? If so, I think planning to make a little purchase on both ccs every month and using cash otherwise when you can is the way to go. Pay your dues like that for another six months to a year, and then this will all be behind you.
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Tubpbs
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Re: What can I do for a high utilization reporting?

Postby Tubpbs » Mon Dec 05, 2016 7:55 pm

kcm7 wrote:Yeah, it can be hard keeping util low when your limits are so low. The "make multiple payments a month" advice technically works, but as you just proved, it can be hard to do in reality.

Is the debit card you mentioned (with the daily $200 limit) the only debit card you have? If so, I think planning to make a little purchase on both ccs every month and using cash otherwise when you can is the way to go. Pay your dues like that for another six months to a year, and then this will all be behind you.


The second half of this post needs to be your plan if you want to actually build your credit. If you do what you concluded in your previous post (talking to OP here), you will never get anywhere. If you can carry a "wad of cash" - you can let the bank hold $300 for a year to help build your credit. Closing the cards and going back to cash will send you backwards months to years.

Do what KCM said. Buy something on each card every month for $10 and pay it in full. Buy the rest with cash. Do this for 6 months to a year and things will open up for you. Then things can snowball in a POSITIVE way. Be patient. This is not a week long game. It's years of work if you want to succeed.
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