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Up to 30% is usually "good"... and honestly even over 30% is not terrible, especially because utilization usually doesn't have a long term impact...if your utilization is x% last month and y% this month, then for (most/all?) reports you'll just have a score based on y, even if x and y are very different. So maybe if you're trying to buy a house this month, focus on keeping your utilization down. But if you want to buy a house in a few months, don't bother worrying about it.
– user3067860
Commented Apr 26, 2021 at 19:06
You may not earn interest on the cash if it's kept in a savings account, but it frees up a bit to be invested in more productive things.
– jamesqf
Commented Apr 27, 2021 at 4:31
1

@user3067860 When I bought a house last winter, my utilization was on the high side (all the house-buying expenses like lawyer, inspection, etc. plus holiday spending)—the mortgage lender advised me to just pay it off and ask my credit card company to release my latest credit details, which did the trick for me. So even if you are buying a house this month, it may not be that big a deal. (Which is utterly ridiculous since they had all my financial info and could plainly see I’d have no difficulty with the balance, but actually paying did cut about an eighth of a percent off my rate.)
– KRyan
Commented Apr 27, 2021 at 20:53
+1. And I would double-emphasize the importance of using auto-pay so you never miss a payment. Just make sure your checking account always has enough in it to cover on your payment date. After making a large purchase, I use my mobile app to immediately transfer money from savings to checking before I forget.
– Dan A.
Commented Apr 28, 2021 at 12:55

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