- Centurion Member
- Posts: 4913
- Joined: Sun May 20, 2012 4:35 pm
- Location: WI
I am not sure why 25% utilization is important here. I guess that number would be considered not too bad by most lenders, and maybe you read an old article that said to keep it at 25% or something?
In terms of IDEAL score, I have read most recently that 1-9% is best, and 1-4% is optimal.
But unless you are going to apply for something, it changes month to month and really isn't a huge deal anyway.
Now utilization works based on what the lenders report to your CRAs. On the date your statement cuts, your balance then is what is typically reported. What you used the rest of the month, if you paid it before that date, will not be factored into your utilization. So say you charge 1500 on your Freedom, but pay it before the statement date down to 500. Even though you used 50% of your available credit, what will be reported is 500 that month.
So if you want to run money through just make a payment say once a week, and pay right before your statement date, to get your utilization down to whatever you would like it to be. All your cards will likely have different statement dates. Credit Karma has a calendar showing the dates your statement cuts for each card to help you keep track of it, as it can be hard to remember all that otherwise.
Spend whatever you are comfortable with, just pay before the statement date, basically an extra payment if you want only a certain % to show.
Does this make sense? If not please ask away and I'll try to help with whatever else I can.