Credit cards can be essential to building a positive credit score, as long as you use them correctly. Paying off your balance every month is a good idea, but it’s also important to monitor your credit utilization percentage. You don’t necessarily need professional credit card repair services to help you with this. Here are some simple tips to help you get your credit utilization percentage under control.
Use Different Credit Cards To Spread Out Charge
The credit utilization percentage you should aim for is below 30%. So if you only have one credit card with a limit of $1,000 and you spend $300 per month, then your credit utilization percentage is 30%. One way to lower this percentage is to have multiple credit cards and spread out the charges. You’ll have a higher overall credit limit this way, so your percentage will be lower assuming you spend the same amount.
Request A Credit Limit Increase
Many credit repair experts suggest requesting a credit limit increase if you are eligible. Maybe you’ve had a change in your income and can request a credit limit of $8,000 instead of $5,000. This will lower your credit utilization percentage as long as you don’t spend more than you normally do.
Have A Low Balance For Every Account Statement
The best credit repair experts often recommend learning when the banking institution provides account information to credit bureaus. You want to have the lowest balance possible on this date so your credit utilization percentage is lower. Consider making a payment before that date or scheduling any recurring payments around this date. This strategy will help you have a lower credit utilization percentage without changing your spending habits.
Make Multiple Credit Card Payments Monthly
Instead of waiting until the due date to pay off your credit card balance in full, consider making a couple of smaller payments during the month. This often helps people manage their finances a little easier since smaller payments are easier to swallow than larger ones. You’ll also be keeping your credit utilization percentage lower along the way.
Core Credit Solutions provides the best credit repair in Los Angeles for people who need it most. Our team has more than 25 years of experience in credit card repair, collection removal, negative item removal, and much more. We can help you develop strategies for managing your credit utilization percentage, so contact us today to learn more about our services.