keeping a 30% balance

[jenniferju2]

Hi, I had some credit advice given to me by my father (a very good source) and he got it directly from a tax specialist that he had hired when he had some issues to take care of himself. He makes six figures and is a very respectable man <---I only bring this to light so you know Im not just talking about some ho hum.

According to the tax specialist the best forumla (so to speak though there isnt an exact one) is that you should do the following

USE 50% or less of your available credit (though I keep hearing 30%)
and KEEP an around 30% balance

this will show you understand how credit works and are managing it appropiately.

now the question is I keep on seeing that you should pay it off in full (which IM thinking is just being careful -kinda a rule-for-all) But Im interested in the fast track here and if its 30% im wanting to do exactly that and am completely capable.

[Lian]

Here is the consistent advice I hear from those I respect as experts in utilization of credit.

FICO scores overall % util, the effect of individ % util of each card, and the percent of cards reporting a balance each month.

Having all cards report a balance each month is an automatic 100% of revolving accounts with balances. Not desirable.
Optimum overall util is considered less than 10% for scoring. I have never heard one versed in credit scoring suggest that 30% util is better than 10% util.

Individual cards that are significantly higher in % util than others result in a ding, as % util is not uniform as util rises, meaning that the same 10% increase at higher utils hurts more than at lower util levels.

Yes, FICO likes to see at least one card report a balance each month so that it can evaluate accrual and payment of debt. So I would agree not to PIF everything each month.

Your suggested strategy is significantly different from the advice I have seen posted elsewhere.

[jenniferju2]

Originally Posted by Lian

Yes, FICO likes to see at least one card report a balance each month so that it can evaluate accrual and payment of debt. So I would agree not to PIF everything each month.

Your suggested strategy is significantly different from the advice I have seen posted elsewhere.

yes it is..that's what brought me to ask directly. thank you for your reply. I think (now that ive had direct response to my question and not a similar question) there MUST have been some misunderstanding along the way. With the days of research Ive done it seems only clear that that must be the case since everything tells you (as you know) 10-30% utilization and PIF (though Im glad to see there was something to not PIF.

thank you!