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Credit Utilization


TexasRN
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I have three credit cards that thankfully I was able to pay down to within 10% of limit lately.

They have recently deducted the automatic payments so now they are below 0% and have a credit listed.

My credit score has taken a hit because of this. Should I just use the sparingly to keep the debt above 0 each month and

pay less than the minimum? I am at a loss because it seems the minimum on one card is $35 each month but it has a $500 limit 

so 10% is below $50. How in the world do I manage keeping it between $35 and $50. Feel like an idiot here...

 

We are trying to purchase a home and I have been able to raise my score from 607 to 640 in 3 months...

 

Thank you for your help!

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Unless you are getting your scores directly from FICO, they are not the scores mortgage lenders will look at.  And, there are many different FICO scores.  The one we are allowed to see is the FICO Consumer Score...which is closest to the Fico Bank Card score (the "sucker score") which CCs use to determine who they will make money from, by charging interest and occasional fees.   That's why the sucker score includes "utilizsation".

 

I suggest you stop the automatic payments, leave the balances at zero, and see what your FICO mortgage score actually is.

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Folks....since we haven't actually heard back from the OP, I think we're missing her point.

 

She's caught in the sucker score utilization trap.  She isn't late and in fact has a negative balance on one of her cards...which the sucker score treats as a black mark in the "we can make money off this person" calculation.

 

I think her FICO Mortgage Scores are likelt to be just fine...

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