Quote:
|
Originally Posted by Jacklad
<laugh> I was told that I should carry balances instead of paying everything off every month. Apparently 20-30% utilization is optimal for the score (0% isn't).
The whole mystery of FICO (and even the fact that it is so mysterious) doesn't make much sense. Black magic, I tell you! 
Jackie |
Actually, it doesn't matter whether you pay in full or carry a balance to the next month. What matters is what your balance is on the day that the credit card company reports it to the credit bureau. Say your your bill is $100 and it is due on the 31st. You pay it off in full on the 30th. But if your credit card reports on the 29th, it will say you have a balance of $100. I think you can find out from the credit card companies what day they report on, if you want to get totally anal about these things.
I have also heard that about 25% utilization is primo. FICO and the credit bureaus have always tried to keep this stuff hidden so that people like us don't learn how to outsmart the system!