Why should you aim for 1% credit utilization while rotating credit?
This is a confusing way of expressing the $2 trick, where $2 is equal to 1% utilization on a $200 credit limit. The idea is that each month, you should have exactly one credit card which has a balance, that balance should be small relative to the credit limit (though up to 5% is probably okay). So on all your cards, you prepay the balance before the statement closing date, and on exactly one card, you leave a small balance. You rotate the card which has the balance so that none of your cards become inactive. This has been shown to provide an increase of about 8 to 15 points as compared to either having a zero balance on all your cards or a non-zero balance on multiple cards. It should be observed that unless your credit cards have the same closing date, there will be times during the month when your credit report either doesnt show a non-zero balance on any card or else it shows a non-zero balance on more than one card.