What kind of hit for carrying balances [update 6/24]

Question

I've been keeping my utilization way low, with most accounts reporting zero, and the others reporting nominally, so that my utilization has been about a third of a percent. This week I decided to get some postponed dental work done, and to pay for it with some zero-interest-rate cards and not worry so much about the FICO scores. And I'm considering letting the balances ride for awhile, not paying them off totally, and letting my reported balances go up to the neighborhood of 5% overall utilization, with the zero interest cards just under 30%. How much of  a hit can I expect on my FICO scores if I do in fact let my utilization go from a third of a percent to five percent? Even if you tell me I can expect a bad hit, I might do it anyway, just as an experiment...My scores are of only academic interest at this point since I should be gardening at this stage of the game. But I do wonder what lies ahead. Updates:  5/17 Started May 16th with: 10 accounts at zero balance, 3 accounts posting total balance of $241, representing less than .3% overall utilization Over the next 5 days, I allowed 3 of the 13 revolving accounts to post a total of $1524.33, for 1.7% overall utilization, with individual account utilization ranging from 2.13% to 49%. 5/22 EX dropped 2 points. 5/29 Balances up to $2700, representing 3% overall. No other score changes yet. 6/3 The entire $2700 has been reported to TU, and my TU score has not budged. 6/5 As of today I'm up to $3500, for 3.9% overall utilization. My only FICO change so far has been -2 on EX. But both my FAKO scores at Credit Karma just dropped 5 points, which makes me nervous. So I will probably let it peak at 3.9% and start bringing the numbers down now. 6/8 Boom! EQ FICO dropped 11 points! 6/11 No new change in scores. 6/17 will start reducing utilization 6/16 30 days from the start of my experiment: EX -2, EQ - 11, TU - No change 6/24 down to 2.4% overall utilization, no change 6/27 Today TU dropped 3. After my utilization dropped from 3.9% to 2.4%. Go figure. 

Answer 1

NRB525 wrote:
There should not be much change by having your utilization go to 5%, as far as how it affects your score. I would suggest, though, that you are in a phase with your cards where you do not want to pay before statement cuts on any cards. I'm guessing you got a number of cards recently, thus the gardening mode. As you try to build your relationship with those CCC, they SP you periodically to see how your file is working. If you don't show any activity on many of your cards, they may be a little concerned. If they see a steady flow of PIF activity on most or all your cards, they will see a potential profitable customer and are more likely to not overreact if you start using their card more. There is something to be said for acting boldly and showing you can handle debt and payments. As to the 0% APR on the dental work, that's a way to show you can take on debt and pay it back, with no cost to you. This is another behavior you want all your CCC to see, to make them more comfortable with your file. The "All cards at zero but one" is fine for absolutely tweaking the last point out of your score (and thats about all I think it gets the cardholder). As a long term way to build the confidence of your several CCC so they don't overreact? In my opinion, it is not helpful to hide your good payment activity by this pay before statement cuts method. Your long term relationship with the cards you do have, that is your main goal now, not getting a bunch more cards. As your file ages and these cards show activity, adding the one or two other cards you want later, will be a cake walk, regardless of FICO score. By the time you get to adding the one or two other cards, your scores will have risen nicely anyway, even if you show PIF balances paid by the statement due date, boldly broadcasting that activity for all to see. Good luck!Thank you for all that good stuff. I have some questions: "As you try to build your relationship with those CCC, they SP you periodically to see how your file is working. If you don't show any activity on many of your cards, they may be a little concerned". They would take a zero statement balance on an active account as a sign that there was no activity? " If they see a steady flow of PIF activity on most or all your cards, they will see a potential profitable customer and are more likely to not overreact if you start using their card more. " By "PIF activity" you mean "PIF after letting a statement balance show" activity? "As to the 0% APR on the dental work, that's a way to show you can take on debt and pay it back, with no cost to you." They would know that it was promotional interest rate borrowing? "The "All cards at zero but one" is fine for absolutely tweaking the last point out of your score (and thats about all I think it gets the cardholder). As a long term way to build the confidence of your several CCC so they don't overreact? In my opinion, it is not helpful to hide your good payment activity by this pay before statement cuts method." Well basically "tweaking the last point out of [my] score" is what my question is about. I know that making my present credit card banks happy isn't impaired by my using their cards a lot so long as I pay them off. My question only relates to what kind of temporary hit my FICO scores will experience in the process. "Your long term relationship with the cards you do have, that is your main goal now, not getting a bunch more cards." Well I don't know about that; some of my cards aren't as good as others,, and none are low interest. Some have exorbitant balance transfer and cash advance fees.  I would like to have some other cards which charge lower interest rates.