I receive a monthly credit analysis from identitymonitor citi. The number 1 negative factor in my report is "I have around $800 in my revolving account". That is just 5% of my net credit limit. I pay off all my balances at the end of month. Why is this a negative factor? Should I stop using credit cards so that this negative factor goes away? Its really hard to comprehend how they are computing credit scores. Could someone please clarify? thanks, Samit
They have to put something in the negative, and that is the most negative thing they could find. It doesn't mean that it's really that bad. If you only have a 5% utilization showing, I wouldn't worry about it.
