I have 3 credit cards, 2 of which I use only once or twice a month, primarily for gas, and perhaps other items depending on the cash back category. Purchases are typically under $100 a month, and get paid off nearly as soon as the charge hits the card, so never pay interest. I have the cash in the bank, but I like to get the cash back. However, I have one credit card that I use constantly for any and all purchases, and all of my automatic payments for anything I can pay with a credit card is setup on this card. Electric, internet, cell phones, car insurance, etc. I also use this card for all other purchases. Again, all of these utilities and purchases are budgeted for and cash is available in the bank to cover them, I just like to earn cash back. I pay for any posted amounts with my bi-weekly paycheck, but there may be pending items that I don't pay off until the next paycheck. As such, my balance almost never really hits zero, and may be zero for only a day or two. My statement and my credit report could show a credit card utilization of anywhere between 0-20%, ($0 to $2000) depending on when charges appear and when payments are made. I'm planning on purchasing a house in the next 4 to 12 months, so I want to make sure my finances look attractive for a good mortgage rate. Should I switch my automatic payments to pull from my bank account, and limit my credit card purchases, or does this ongoing, regular use still look okay to a lender? I just don't want it to raise any red flags that I can't pay for these purchases in cash, when I absolutely have that cash available and every purchase is within my budget. If it helps, my credit score is above 800 and I have 14 years of good credit history. Please let me know if there might be any other details I could provide. Thank you in advance!
Submitted February 14, 2018 at 07:42AM by thmurphy2016 http://ift.tt/2nWfY11
