topic Re: Util question/scenario in Understanding FICO® Scoring

Util question/scenario

scarrollprint — Wed, 14 Nov 2012 15:17:44 GMT

IF I nearly max out a card that is my lowest limit, and I have 2 other cards that have over double the limits - should I expect to see a MAJOR point drop?

I'm not too concerned since I just got a new WM card so I'm not looking to app for anything soon, but I have been working on keeping everything on the upswing, and not on the down.

My CLs are 300, 750 and 700 with current util at 0%, <1%, 0%.

If I maxed out the $300 card, that would put my card util to 100%, 1%, 0% but my overall util would only be around 17% which isn't 10% but still pretty low. Will I see a nose dive for "maxing out my card" or is it going to consider the fact that out of the other $1450 I've only used a whopping $10?

I have a purchase I'm going to make and since I can get 1% cash back on it, I'd rather use that card, but not if I'm going to see a nose dive for maxing out 1 card.

Re: Util question/scenario

Epcot — Wed, 14 Nov 2012 15:58:07 GMT

You will definitely see a drop. How major is hard to say. Maxing out a card is using more than 90% of the credit extended to you on that line. Maxing out a card can be a red flag to lenders.

However if you are going to pay it off rather quickly and do not plan on applying for credit you may be ok.
Personally I would break it up and try to keep each card under 50% utilization.

Re: Util question/scenario

nicholasyud — Wed, 14 Nov 2012 15:58:42 GMT

I don't think it's good idea to max out any card.....it's normally drop about 10 points........if you really want to used that card to get 1%cash back then you should paid it before statement cut off time.........it's just my suggest.......

Re: Util question/scenario

scarrollprint — Wed, 14 Nov 2012 16:34:16 GMT

nicholasyud wrote:
I don't think it's good idea to max out any card.....it's normally drop about 10 points........if you really want to used that card to get 1%cash back then you should paid it before statement cut off time.........it's just my suggest.......

That would be the plan, however CAP 1 has been draaaaaaaaaaaaaaaaaging their feet when it comes to posting things to my account lately.

My statement closes next week, but with Gobble-fest (thanksgiving) who knows what that will do. This was more of a "what if scenario" for me, what if they don't post it they day they cut the statement and I have no time to pay it.

I'll probably just put it on the other card since that wouldn't even push it to 50% and that statement closes after thanksgiving so I know it will post and give me time to pay it down prior to the statment closing.

Thanks, for the info.

Re: Util question/scenario

Jutz — Wed, 14 Nov 2012 16:41:46 GMT

Do you mean posting purchases, or posting payments has been slow? My payments have FINALLY been posting quickly to my Cap1 account, but purchases take like 3-4 business days until they post and allow me to pay.

Re: Util question/scenario

scarrollprint — Wed, 14 Nov 2012 17:37:11 GMT

Jutz wrote:
Do you mean posting purchases, or posting payments has been slow? My payments have FINALLY been posting quickly to my Cap1 account, but purchases take like 3-4 business days until they post and allow me to pay.

Purchases. Payments have for the most part posted next day (except for sunday payments) when I pay online. However I've had payments at some pretty big stores (target/walmart/etc) that have taken a full week to post. But then others that will post after a couple days.

I'm afraid if I use the card, and it doesn't post next day, but rather it waits a week, between that and then thanksgiving it would mean that I wouldn't be given the opportunity to pay before the statment closes, however it will have posted to this months statement.

I'm not going to risk it - sure I'll loose the $3 but oh well I'm not going to play utilization roulette for $3.

Re: Util question/scenario

my-own-fico — Wed, 14 Nov 2012 19:55:43 GMT

Time is mo.. Sorry, your $3 are up. :smileyvery-happy: