31 Point Credit Score Increase!!!!!!! Utilization!

[ramblin_wreck08]

I'm so excited right now!  Over the last couple months I've tightened up my spending in order to pay off some credit card debt (albeit at 0% APR).  Dropping my utilization down from 36% to 1% bumped up my TransUnion FICO score from 709 to 740 despite apping for an AMEX charge!

Thanks to everyone on here for the great information!  With a little gardening I feel like I can hit my goal of 760 before I decide it's time to buy a house.  Thanks everyone!

[theagent26]

Congrats!

[AZHeather]

Congrats, Ramblin! 

That utilization can definitely make or break your score.  I have been gardening, so not overly concerned with my utilization lately, and made a large purchase on my Discover to take advantage of my 0% financing.  I am paying it off over the course of a few months, but the utilization KILLED my score that first month.  I took like a 45 point hit.  It is amazing what a difference your utilization makes.

[ntx]

Similar story here - I put $3800 on one of my cards, that brought me up to 95% util on that card, overall util. 44%. No other significant changes.

EQ went from 672 to 651.  Oddly, TU only took 4 point hit, from 696 to 692.  (both myFICO scores)

I'm in the garden now as well, and will pay off that balance before the end of  the year. Still not pleasant to see that though.

[MsLadyRover]

That's an awesome increase! Congrats!

[creditnocash]

congrats! thats a great increase. 

something similar with me. 

tu went up from 654 to 708 in the past couple months. 

with new inquires 

lowered util 

higher cl etc. 

went from 2700/4900

to now about 1600/11k   all being paid off by november is my goal.

[jdirilo]

Nice! CreditKarma is showing my util at 68% because both of my cc were almost at the max when they were reported(I didnt know about the cycles and statement dates). This week I expect two more $500 cc's to hit my credit. Well, one with NFCU I was told the statement closing date was the 25th, but I called to pay it off today and the lady told me there is no payment due and I dont even have a statement cut yet(I got the card three weeks ago). So I am confused! 

Either way, I hope to get my utili down below 10%. CK shows my score at 566(I checked my TU score today on the TUplus website, and it was 602) and when I do the credit simulator, my score will go up almost 30 points just by lowering my utilization!

[Poet34]

Congrats!

I had a similar experience earlier this month.  

I paid off, what at the time, was my only cc.  The 90% utility went to 0% and my EQ Fico increased from 686 to 726.  BTW, the myfico credit simulator predicted my score would increase to between 710 and 740 with me paying off the card, so I was happy with the result.

I went on a small app spree and now will garden for awhile.

[Anonymous]

I am new to this, can you explain to me what utilization is? Thanks!

[Poet34]

It's the percentage of your credit limit that your balance represents.

For example:  If you have a $500 balance on a card with a $1,000 limit, then you're at 50% utilization.