Credit Cards Center Credit cards from our partners
Reply
Frequent Contributor
Posts: 271
Registered: ‎02-10-2013
0

Re: Am I being punished for paying all my cards off each month?


KhuKhu wrote:

09Lexie wrote:
There's a misconception with 'carrying a balance' as opposed to allowing a balance report. For max FICO scoring, its best to allow one card report a balance ( util less than 10%) and PIF.

In order to avoid paying interest, you do not want to carry a balance,

Is there a difference in maximizing FICO scoring if I let my UTL report 2%, compared to say...9%? or as long as it's 1%-9%, it makes no difference?


It makes a difference. What kind of difference it makes for you would be impossible to say. The "optimal" is likely different for different people/profiles/buckets etc. 

Regular Contributor
Posts: 210
Registered: ‎02-08-2013
0

Re: Am I being punished for paying all my cards off each month?

For your optimum FICO scoring suggestion of 9% utilization, is that a percentage of your total CL between all of your cards... or just the one card you are allowing to report?


Current Score: EX: 718, EQ: 715, TU: 720
Goal Score: EX: 750, EQ: 750, TU: 750

Take the myFICO Fitness Challenge
New Contributor
Posts: 68
Registered: ‎04-12-2013
0

Re: Am I being punished for paying all my cards off each month?

[ Edited ]

BackInTheSaddleAgain wrote:

For your optimum FICO scoring suggestion of 9% utilization, is that a percentage of your total CL between all of your cards... or just the one card you are allowing to report?


1 card reporting at 1-9%, all other cards report zero. This seems to be the general consensus on myFico.

 

On a similar note, i'm wondering which is better, 1%, 5%, or 9%? i dont have a general consensus on this but people have been telling me it's different for everyone.

 

Here was the thread i was asking it on: http://ficoforums.myfico.com/t5/Credit-Cards/QUESTION-regarding-UTI-and-maximizing-FICO-scores/td-p/...

Valued Contributor
Posts: 1,086
Registered: ‎02-06-2013
0

Re: Am I being punished for paying all my cards off each month?

   This thing about maximising your score by having one card report a small balance and the rest report zero. It is not always true for everyone. Also the number of cards you have reporting a balance becomes much more sensitive to your score when your cards are hitting the 4 year mark. Some people will find they get a better score when 2 cards are reporting a ballance. it varies so don't think that this rule is set in stone. It is best to experiment with the cards you have and your situation and try and figure out how to optimise your score yourself. Different people are in differenr buckets and the models act differently. i wouldn't get too technical with all this stuff. Try to keep it simple.

New Contributor
Posts: 68
Registered: ‎04-12-2013
0

Re: Am I being punished for paying all my cards off each month?


dddewdrop wrote:

   This thing about maximising your score by having one card report a small balance and the rest report zero. It is not always true for everyone. Also the number of cards you have reporting a balance becomes much more sensitive to your score when your cards are hitting the 4 year mark. Some people will find they get a better score when 2 cards are reporting a ballance. it varies so don't think that this rule is set in stone. It is best to experiment with the cards you have and your situation and try and figure out how to optimise your score yourself. Different people are in differenr buckets and the models act differently. i wouldn't get too technical with all this stuff. Try to keep it simple.


Good info, thanks. Yeah, looks like I will have to experiment myself. I just needed a starting point.  I think will start with reporting 1 card at 1%, and go on from there...

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.