topic Re: Fico Score & Utilization Percentage in Understanding FICO® Scoring

Fico Score & Utilization Percentage

CreditBob — Fri, 14 Sep 2012 14:26:51 GMT

Here is a question that I have & hope that someone can answer. One of the reason risk codes comes back as "High balance on revolving account". The credit limit is $ 1,000 and the utilzation rate was at 99% or a balance of $ 990. At what balance or utilization percentage will it no longer be a factor as a high balance as far as keeping the score lower? In other owrds when I am at 75%, 50%, or what balance & utilzation?

Re: Fico Score & Utilization Percentage

llecs — Fri, 14 Sep 2012 14:31:04 GMT

Balance is a separate FICO code. Sometimes you'll see a reason code saying "the balances on your revolving accounts are too high".

Per util, ideally you'd want to have all CCs at $0 but one and get the one to under 9% of the CL. YMMV on everyone's credit of course. But I personally have seen a negative comment of high util at 16 or 18% (I'd have to dig up old reports...def. under 20%). It's YMMV on your credit and scoring bucket. Some can have high util at 50% and not see the comment.

Re: Fico Score & Utilization Percentage

CreditBob — Fri, 14 Sep 2012 15:02:51 GMT

Ok thanks. Do you think that if the average utilzation percentage is around 75%, down from 99%, the average on 6 revolving accounts, that the score will go up some what (a little)??

Re: Fico Score & Utilization Percentage

llecs — Fri, 14 Sep 2012 15:07:59 GMT

Probably not, unless FICO saw any card at 100% or more as maxed. If util is listed as a top one or two neg. item on the FICO report, and if someone with 99% has a solid mix of credit (3 or more CCs), then that person probably won't see any gains until the card hits below 50%, and will rapidly see increases below that threshold, especially below 20%-30%.