dfm990 wrote:Ok some here comes another strange question like i usually ask. I already know that ideally a 10% CU (credit utilization) is what your supposed to have. But my question is if you have certain score, you then bring your CU down to, lets say, 6% and this boosts up your CS a couple points for that month. If next month due expenditures your CU goes up to 10%-11% would your CS go down due to an increase in your CU or go up considering its still a very low CU.
I've noticed on my Credit Karma report that my CU fluxuates quite regularly between 5-10% with little change in my CS. However, this month, my credit utilization is at 35% (because I purchased a vacation package) and my CS has dropped 30 points. I would disagree with MeltdownBlitz in that ideally you want about 10% CU if you want to maintain a good CS. 30% CU is the tipping point at which your CS will begin to be significantly and negatively impacted, but 0% CU is no good either if you are trying to maintain a financial relationship
with a creditor. Your CS is not likely to be significantly impacted by small variations in CU. A more interesting question might be: does maintaining a consistent spending pattern (say 10% CU every month for a year) impact your CS? Food for thought.