Green = safe to use Yellow = be careful Red = will hurt your score
Hope you guys like this one more than HumanAlarm
Green = safe to use Yellow = be careful Red = will hurt your score
Hope you guys like this one more than HumanAlarm
This implies "carrying a balance". Which, if true, is far worse than a 50 point credit score loss, because the interest on credit card balances usually is just shy of being high enough to be defined as Usury.
Credit cards are best used when one pays the balance in full every month, so that no interest charges accrue.
You could have a 0 balance for 28 days and unknowingly make a large purchase the day before your statement closes and now youre at 63% and your score takes a hit. You could also be at 63% of your limit for 28 days and pay just before your statement closes and have a 0% utilization and your score doesnt take a hit.
So even if one pays the balance in full every month, so that no interest charges accrue, they can impact their credit if timed incorrectly and that could lead to higher rates elsewhere.
I'm sorry it didn't translate as I'd hoped.
leakycap•4mo ago
Sounds like an interesting concept, but there is more to it than a simple 30% rule, surely?
soelost•4mo ago
Yes, theres more to that than the 30% rule.
The goal is to optimize your utilization: - start with the 30% rule for daily management - spending: dont use AMEX until tomorrow - use Chase instead - bills: move AXA car insurance to Discover card to save $10/mo - due date: move utility bill from 7th to 10th to drop utilization 9% * avoid spending between due and statement date because that could "undo" your payment and artificially spike your utilization