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Contributor
canadaam
Posts: 81
Registered: ‎08-11-2010
0

30% Credit Usage!

Prior to getting on these forums, I read that I should keep my credit usage at or below 30%. I did that. (I kept a balance on there until my statement pulled then PIF), but since then have read here that I should keept it at 10% or less. I bought the quarterly fico monitoring here and this is one DING I got, which I am kind of upset about. Now I know to trust the myFico Forums only! :smileymad:

 

You've made heavy use of your available revolving credit.

Ratio of your revolving balances to your credit limits
30%
For FICO High Achievers, this ratio is 7%, on average.

Your FICO score evaluates your total revolving credit balances in relation to your total credit limits on those accounts. In your case, this ratio of balances to credit limits is too high.

Keep this in mind: This credit usage ratio is one of the most important factors to your FICO score, so you should work on paying down your balances. Your FICO score looks at the ratio of revolving debt, but not in which accounts the debt resides. Therefore, consolidating or moving your debt from one account to another will usually not help your FICO score since the same total amount is owed.

 

This is only my first statement, but hopefully when my statement pulls tomorrow and is reported my balance of 10% utilization shows and affects my score. Bah humbug!


Starting Score (Aug 2010): EX637 EQ641 TU 650 (FAKO)
Current Score (Sep 2010): EX664 TU663 EQ677 (FAKO) // TU FICO® 651 EQ FICO® 657
Goal Score: 720

Take the FICO Fitness Challenge
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Epic Contributor
haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
0

Re: 30% Credit Usage!

Yep, mine is something like 1% of 1%. :smileyvery-happy:

 

We used to have brisk debates here about whether 3% was better than 1%, and on and on. No final verdict reached on that, as far as I remember, but they're definitely better than 30%.

 

Best scoring results seem to be just one card reporting a balance, with that being exactly 9% or less of that card's balance. (FICO rounds up, so 9.0001% will report as 10%.)

 

Again, this is for scoring. Consumers who PIF before the due date, as OP did, pay no interest. The credit bureaus chose to report statement balances, so that can make it look like you're carrying debt when you're not.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Valued Contributor
my-own-fico
Posts: 1,308
Registered: ‎01-05-2010
0

Re: 30% Credit Usage!

 


canadaam wrote:

This is only my first statement, but hopefully when my statement pulls tomorrow and is reported my balance of 10% utilization shows and affects my score. Bah humbug!


 

Just to make sure, what's the balance now of the present billing cycle whose statement pulls tomorrow? And what's the card's credit limit?

 

Are you living within your means?
Frequent Contributor
jaystay
Posts: 368
Registered: ‎09-14-2009
0

Re: 30% Credit Usage!

[ Edited ]

check this out lol

 

I just paid off my cards to reflect only 7% usage hoping to get a score increase, but I get the feeling I won't be seeing much if any  increase since FICO shows 29% as a positive for me. :smileysad:


EQ Starting Score: 579 | TU Starting Score: 568
EQ Current Score: 650 | TU Current Score: 653
EQ Goal Score: 1000 | TU Goal Score: 1000


Contributor
canadaam
Posts: 81
Registered: ‎08-11-2010
0

Re: 30% Credit Usage!

It's a BofA secured card with a $300 limit. I left a $30 balance to appear on my statement which now i'm thinking I should have left less!


Starting Score (Aug 2010): EX637 EQ641 TU 650 (FAKO)
Current Score (Sep 2010): EX664 TU663 EQ677 (FAKO) // TU FICO® 651 EQ FICO® 657
Goal Score: 720

Take the FICO Fitness Challenge
Moderator Emerita
Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
0

Re: 30% Credit Usage!

 


jaystay wrote:

check this out lol

 

I just paid off my cards to reflect only 7% usage hoping to get a score increase, but I get the feeling I won't be seeing much if any  increase since FICO shows 29% as a positive for me. :smileysad:


From what I've been told, it would be more accurate to regard the "positive factors" as "not as big of a problem as those listed as actual negatives." :smileyvery-happy:

 

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Moderator Emerita
Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
0

Re: 30% Credit Usage!

 


canadaam wrote:

It's a BofA secured card with a $300 limit. I left a $30 balance to appear on my statement which now i'm thinking I should have left less!


 

... which would be 10%.

 

I wouldn't worry about it. You might eke some more points out next month at 5%, but maybe not.

 

Your util is listed as the third most negative factor on your reports. Whatever numbers 1 and 2 are are hurting your scores more. So I do think that you'll see a score improvement when you card updates, but you probably won't get a lot more for tweaking it down again. The impact of util is depending on how bad #'s 1 and 2 are.

 

Nevertheless, it's good to address anything in the negative columns, even when you don't get a bit score jump. In the end, it all adds up to a better credit profile.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Frequent Contributor
jausanka
Posts: 483
Registered: ‎05-06-2009
0

Re: 30% Credit Usage!

 


haulingthescoreup wrote:

 

From what I've been told, it would be more accurate to regard the "positive factors" as "not as big of a problem as those listed as actual negatives." :smileyvery-happy:

 


 

Agreed!  Don't think a late payment is a "positive"... just less negative than others problems as time went by ;-)

 

What’s helping your FICO® score

The positive factors listed here reflect areas of your credit behavior that are helping your FICO® score. You should continue the good practices listed here. These factors are listed in order of their impact to your score – the first has the greatest positive impact and the last has the least.

  1. You've recently been paying your bills on time.

    Your most recent late payment happened
    6 Years ago
Frequent Contributor
jaystay
Posts: 368
Registered: ‎09-14-2009
0

Re: 30% Credit Usage!

i'll let you guys know if my score increases once GEMB reports my new balance. They usually update me around the 21st so it should be soon.


EQ Starting Score: 579 | TU Starting Score: 568
EQ Current Score: 650 | TU Current Score: 653
EQ Goal Score: 1000 | TU Goal Score: 1000


Frequent Contributor
jaystay
Posts: 368
Registered: ‎09-14-2009
0

Re: 30% Credit Usage!

Even when I was over 30% util it was a positive for me, lol you just cant win at FICO :smileyindifferent:

 


EQ Starting Score: 579 | TU Starting Score: 568
EQ Current Score: 650 | TU Current Score: 653
EQ Goal Score: 1000 | TU Goal Score: 1000



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