- Centurion Member
- Posts: 538
- Joined: Fri Mar 09, 2012 9:29 am
- Location: San Francisco, CA
Wow a lot of wrong info here. Utilization percentage (ie credit used/credit available) will affect you negatively at almost every level. Although for some reason, you do get a bump in your score if your utilization is between 0% and under 10%. You have to experiment a little to see what is ideal. There are certain levels of utilization where the ding you get is bigger such as 30% or 80%. So yes utilization does affect your credit score.
BUT remember credit should only be a tool to enhance your financial future. Since utilization is easily quickly fixed, dont worry about it. You should only worry about your credit score when you are planning to apply for more credit. And you should probably not apply for credit without planning for it (trust me, I have made that mistake. Save 10% at gap by getting their credit card and saving $10 but later getting auto loan and having to pay higher rate because that inquiry ding hurt em). So if you are getting 0% for a little bit, then take your time paying it off as long as you do pay it off before the interest kicks in. If you are planning on applying for credit soon, then pay it off and make sure it is reflected in your credit report before applying. If you want to maxmize your FICO score, then leave a really small balance for when you apply (think $120 on your 6k card).
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