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Established Member
Posts: 13
Registered: ‎10-22-2012
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How much will a high credit utilization hurt my chances of the best financing?

New here, thought I would post my own unique situation.


Right now, has given me scores of 714 TU and 741 EQ. I have 2 student loans paid 20% off, two car loans that have been paid off. The only thing dragging on my score is that my credit util is 8,100/8,500. (I've actually already have this down to 6,900 but it hasnt posted yet) I have never had a late payment, or anything negative on my credit report. I was always told you were ok as long as you were around 50% util, but I've read a lot around here that you actually want to be less then 30%?  I'm hoping to buy the most sensible new car I can, with some cash and hopefully getting a decent amount for my old car, I will need to borrow about 14,000. (Includes all fees and taxes) Can I still qualify for the best rates? Say sub 4%?


I had the idea of looking into a balance transfer but peolpe here say that is a waste of time and wont help you. I'm a little confused though, if I get another card, even just a  few grand, and move my debt around wont that lower my credit util? I've also given thought to calling my credit card company and having them increase the limit on my card just by a hair. 


One other quick question. I may need to go 72 months. I've found some reasonable interest rates versus 60 month loans. What is typically the minimum loan amount on a 72 month loan. I realize that I will pay about $700 in extra interest but I am planning on keeping this car for a decade+. Then again its only an extra $30/month....

Valued Contributor
Posts: 1,671
Registered: ‎05-24-2007
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Re: How much will a high credit utilization hurt my chances of the best financing?

You will probably be fine. 741 EQ FICO with two paid off car loans likely means top tier.. If the lender uses an Auto Enhanced FICO, it may even be better, not that it matters.


New accounts or an Inquiry for a new account or credit  increase will hurt for at least a few months. You are probably best leaving it alone.


You might see some increase if the new CC balance posts but that may still be maxed out for scoring. It varies for each account but the steps seem to be about 1-9%, 30-50%, 80-90%, and 100%. 30% is probably mentioned because that is almost always good enough to get you below that step around the middle of utilization.

Moderator Emeritus
Posts: 14,122
Registered: ‎04-15-2011
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Re: How much will a high credit utilization hurt my chances of the best financing?

+1   The util is high and is dragging your score down a bit.  You shouldn't have any problems getting the car loan.  

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
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Current scores after adding $81K in CLs and 2 new cars since July 2013
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