Credit card utilization is one of the most important factors credit scoring models use to calculate your credit score. You can figure out your utilization rate by dividing your total credit card balances by your total credit card limits.
To illustrate how important this factor is, Credit Karma sampled approximately 15 million Credit Karma members who visited the site in 2014 and compared their credit scores and corresponding credit card utilization rates.
Most credit card banks report your balances at the statement date, so if you’re paying your cards when the statement is received you’re paying too late. The balances are already with the bureaus effecting your scores.
It is a good habit to pay your credit cards 4 days before your statement date so that your scores will reflect those balances.
For any credit score or credit repair/rapid rescoring questions feel free to contact me. I’d be happy to discuss your issues.
President and Certified Credit Expert