Thread: Credit Scores Monthly Increases

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'm not positive but I'd say it would go down because ideally you'd want to have the lowest CU (better yet none at all). And actually I thought you didn't want to exceed 25-30%, not 10% but as I said, the lower the better. I'm sure some of these other guys can answer your question better, I just thought I'd take a shot.

Yea im still wondering, i hope it doesn't go down... that would mean id always have to have the same CU, because at about 6% its hard to keep going down in percentage, unless my credit limits go up.

Originally Posted by dfm990

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.

It's funny you mentioned that capital, that's exactly what I've decided to do, I'm going to be paying off my card before they report so i can have a good CU ratio and maintain the same percentage every month