Originally Posted by
jjoe123
I don't carry balance at all (pay fully every month). From what I understood, it is good to have low utilization every statement (e.g., total bill less than 10% or 30% etc).
So if let's say combined I have 100K CL, and I only use 6K (6%) that is considered low utilization? Even if I use it all on one card that its CL is 10K? (60%)?
Utilization is calculated for each card, and for the average of all cards. If you have 5% utilization on all cards, but 80% utilization on one card, you'll trash your FICO scores. That problem can be easily fixed by the time that your cards report the next month.
The way to optimize your cards is to let all but one card report at zero. Let one non-Chase card report at $2. After that card reports, pay it off. The reason why you can't use a Chase card for the $2 trick is because Chase reports mid-cycle when a card's balance is paid to zero.
Originally Posted by
jjoe123
I see. So better to have more cards (i.e., Freedom and AU Freedom), even though there won't be much activity in the AU one? If it helps, I don't mind keeping it at home stored somewhere.
Yeah, you can sock drawer cards. Just use them once every so months. It can be a $0.50 purchase. Just keep activity so your cards don't get closed for non-use.