CC utilization

[deltadawn]

There is a lot of discussion on obtaining CC.

I have not been able to distinquish what constitutes a prime cc and a subprime cc. (I am guessing that subprime cc has an AF and high interest rates.)

I have opted out and will be getting limited promotional offers in the mail. For over a year I receive a promotional offer from Citi at least 10 times a month. I have always shredded them in the past. Am I correct to assume that Citi is a subprime cc? The interest rate is higher (13.99% variable) and although it shows no annual fee, their website does show an annual fee. Is this a bait and switch type offer? The disclosure statement they sent says "initial disclosure statement".

There is also a lot of discussion on utilization. That seems to be one of the areas I am trying to correct. At the present I have an 11% overall utilization; however, on one cc I'm at 50% (including my Sep payment) and the other I'm at 53% (which will be at 50% once I pay Sep payment).

I do have CC's that appear on my CR that I have not used in a couple of years. Is it best to charge something and pay it off so that they don't go dormant?

I have also received new CC's on several accounts that I have not activated. The reason I did not activate them was because they showed the same account # and the same exp. date as my original card. I do not understand why they would send new cards. Should I activate these cards and shred the old ones?

After reading the various threads, I understand that 30% of my CR is based on utilization - however, is that overall utilization or the usage of each individual cc?

[isislc]

First your assumption of sub prime cards is correct.

Second, you should call and ask about the cards before activating/shredding anything. If you have cards you haven't used, there is a chance those cards may have been closed and these are new cards for the same accounts. Call and ask.

Third, utilization is measured by Overall AND Individual. Although overall your utilization looks great, as each individual CL reports, you may take a hit to your Fico because your util is too high. The 30% base is applied to overall AND individual.

[deltadawn]

Thank you isislc

I called - my old cards are still good. The reason they sent new cards was a promotion. I mentioned to the agent that there was not anything on the paperwork that they sent showing that there was a promotion. She stated that when you call to activate your card, they tell you at that time. They all apologized that the promotion had ended. LOL

I guess too many people are throwing away the promotional junk they receive in the mail and this is a new approach.

[isislc]

You should have asked for a CLI on the cards if they were the same ones and you've had them for a while. Never hurts to try and bring that utilization down.