managing credit limits--specific question re: usage.

[catlfuzzy]

I wouldn't worry about credit utilization unless I was getting a mortgage if I were in your shoes. With an 800 FICO having a high utilization won't hurt enough to matter.

Oh my gosh, I surely don't have 800 fico anymore..(actually was 780 at one point, not 800); I was saying I was able to get it up high by not maxing out cards; paying faithfully, etc. Now I just filed bankruptcy...........have no clue what it is yet. But it ain't good, trust.

[justbroke]

Utilization hurts high FICO scorers more than the lower FICO scorers. The reason the poster's credit score is in the 800s, is probably because they do, in fact, keep the utilization low. There are some scoring models (and I'm not sure if FICO is one of them) that actually look back 6 months for utilization. I think it was a BEACON score that I received that had a comment that my 6 month utilization was "high" (and by high they meant over 30%).

[Logan]

I wouldn't worry about credit utilization unless I was getting a mortgage if I were in your shoes. With an 800 FICO having a high utilization won't hurt enough to matter.

[catlfuzzy]

Good to know for sure. Thank you.

I use this same method. I have one card that I use for travel expenses (work) and charge as much as $6K a month. I pay it all on the due date and it consistently reports with the correct balance (with the $6K paid back). Your usage during the month has no impact on utilization unless you allow it to report the higher balance. Be aware that there are a few creditors that report on a different date than the billing date! There are some creditors that report on the last day of the month regardless of the billing date. I had this happen with one account and I can't remember which one it was, but I don't have that account anymore (for that reason).

So, no... there is no detriment in using the credit during the billing period and paying it back down before the card usage is reported.

[justbroke]

I use this same method. I have one card that I use for travel expenses (work) and charge as much as $6K a month. I pay it all on the due date and it consistently reports with the correct balance (with the $6K paid back). Your usage during the month has no impact on utilization unless you allow it to report the higher balance. Be aware that there are a few creditors that report on a different date than the billing date! There are some creditors that report on the last day of the month regardless of the billing date. I had this happen with one account and I can't remember which one it was, but I don't have that account anymore (for that reason).

So, no... there is no detriment in using the credit during the billing period and paying it back down before the card usage is reported.

[catlfuzzy]

Having built up from 500 fico to almost 800, I understood the value of keeping credit cards under a certain % of credit limit...and paying religiously and on time. But have a question.

If credit card is used close to maximum amount; but paid DOWN before statment closing date; will that still report to credit bureau as charging too close to maximum allowed. I would pay down the balance before bill due, and even pay a second time during the cycle.

So, if card utilized to its limit but paid down before due, will that still be a detriment to credit restoration?

Thank you!