kcarter609 wrote:I would say don't pay in FULL, but rather pay the card down to like a 5% ($100) balance a couple days before the statement posts. Don't pay it off completely. It will report to the bureaus when the statement posts, and you want it to show somewhere between 1% and 9% utilization. Then after the statement posts, immediately pay the balance off. This way, you're letting your account report with the perfect utilization, and you're paying in full inside the grace period so you don't pay any interest.
This is especially important if you want to apply for another card in a couple months, since it will make your score look the best.
I completely agree that this method would be the most effective for gaming your credit utilization ratio. As he said, paying down your entire balance before it is on your statement will result in 0% utilization. But paying down 90% of your balance before the statement date, and the final 10% on or before your payment due date will show some utilization, and prevent you from incurring interest charges.
I am not sure if anyone else mentioned, but from a current account management perspective, the range of acceptable card utilization is slightly wider depending on where you find your information. From what I can gather, an individual lender may allow up to 40 to 50% of utilization on an individual tradeline, if your overall ratio is in the acceptable range
. Does anyone else have any insight into the current account maintenance optimal ranges by issuer?