I can’t tell you what other members on this forum know, or where they got their data from, or whatnot, but I can tell you that everything I have learned is from extensive research over the last two years. Furthermore I’ll go as far in saying I probably know the most out of any active poster on this forum… and can prove my knowledge my the “baddies” i’ve had removed from my credit report, including the commonly difficult to remove judgments.
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No where is “the formula” for your credit score listed in public. Some people believe 15% of your score comes from utilization %s, some say 10% some say 25%.
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Historically, people have had their best credit scores when their revolving debt ( credit cards, store cards ) have a utilization % of 10% or lower.
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If you have ever reviewed your credit report either via a 3rd party service ( myFico, truecredit ) or your direct report ( the file lenders pull up when reviewing your history ) you’ll notice plenty of data. From your existing balance on a credit card, to the credit limit, to the # of lates you’ve had, it’s status as open/closed, etc. It will not report for you or anyone else, your usage pattern… just the current balance.
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Often the CRA’s ( experian transunion equifax ) will not report the maximum limit on a revolving trade line until it has been reached. It sucks, but the CRAs are lazy. Look at your report, chances are you don’t have a credit limit of $143, but since that is the highest balance you’ve ever had on the card, it’s what’s reporting. If that’s what the CRA thinks your limit is, and you maintain a $100 balance ( because you know 10% of your $1000 credit limit is good ) well now your utilization is fucked. If you notice your credit report is reporting an innaccurate limit, you can always call your credit card company and ask them to update the information they send to the CRAs.
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Using the credit card monthly and paying it off in the same month is the same as maintaining a $0 balance, in regards to your credit report. That doesn’t mean there are no inactivity clauses associated with some subprime lenders ( credit 1, HSBC/Household, First Premiere… ).
So to sum it up, use the credit card once, pay it off that month… and then throw it in a shoebox. Check your credit report a few times a year to make sure it’s reporting properly - be aware of any usage / activation fees that might pop up, and you’ll be in the clear.
-adam