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Senior Contributor
Posts: 3,322
Registered: ‎05-05-2011
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CC bal and FICO

I know all about the 9% rule. And I've been doing that. However, I've incurred some moving expenses over the last couple of weeks that I need to finance w/0% BT offer I have.

 

So, my question is about the balance % of CL and how it affects FICO. I'm wondering if there is a % where it hits your FICO more. Like if your bal is over 50% of your CL on that card, does it impact FICO a lot more than at 40%? Or for example, with a $10k CL, does a $6k Bal lower your FICO a lot more than, say a $5k bal?

 

I'm trying to figure out how much to BT w/o too big of a FICO hit.

 

Thanks! :smileyhappy:

 

~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*
EQ FICO 750 | TU FICO 761 (Walmart) | EX FAKO 767 | Goal: 800+

Edits, funky spacing and spelling due to my iPad not getting along with the forum editor!

Valued Contributor
Posts: 2,218
Registered: ‎09-16-2011
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Re: CC bal and FICO

any single card over 70% is considered maxed out, and you will take a hit. 

 

over 30% UTL is another red flag for creditors.

 

you may find various lenders that will over look those if your history is good enough or if the company is subprime. 

 

 

Cards: Chase Southwest 20k & CSP 10k & Freedom 6.6k & Amtrak 4.6k, FNBO DISC 14.9k Oregon Duck 5k, & AMEX BCP 15k & Hilton Surpass 7.5k & Delta Gold 6k & Zync NPSL, Fidelity AMEX 12k Sally Mae5k Sams Club MC 10k, Paypal Extras MC 6k, CapOne Venture 15k, QS 2.5k, QS 750, Amazon 5k, Walmart 10k, Citi Simplicity 7k, HHonors Gold 1k (moved 5k CL to Simplicity), Discover IT 8.5k and a nice stack of store cards.
Last APP/HP 4/22/2015
Senior Contributor
Posts: 3,322
Registered: ‎05-05-2011
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Re: CC bal and FICO


jamesdwi wrote:

any single card over 70% is considered maxed out, and you will take a hit. 

 

over 30% UTL is another red flag for creditors.

 

you may find various lenders that will over look those if your history is good enough or if the company is subprime. 

 

 


So, is the 30% on a single card? Like $3k bal on $10k card, or is that 30% of the TOTAL util w/all CC CLs combined?

 

~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*
EQ FICO 750 | TU FICO 761 (Walmart) | EX FAKO 767 | Goal: 800+

Edits, funky spacing and spelling due to my iPad not getting along with the forum editor!

Valued Contributor
Posts: 2,218
Registered: ‎09-16-2011
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Re: CC bal and FICO

70% on a single card  BAD

30% on total UTL is another BAD mark, at least under it you shouldn't have it come up as a negaitive to getting new cards. 

 

Cards: Chase Southwest 20k & CSP 10k & Freedom 6.6k & Amtrak 4.6k, FNBO DISC 14.9k Oregon Duck 5k, & AMEX BCP 15k & Hilton Surpass 7.5k & Delta Gold 6k & Zync NPSL, Fidelity AMEX 12k Sally Mae5k Sams Club MC 10k, Paypal Extras MC 6k, CapOne Venture 15k, QS 2.5k, QS 750, Amazon 5k, Walmart 10k, Citi Simplicity 7k, HHonors Gold 1k (moved 5k CL to Simplicity), Discover IT 8.5k and a nice stack of store cards.
Last APP/HP 4/22/2015
Moderator Emeritus
Posts: 11,107
Registered: ‎12-30-2011
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Re: CC bal and FICO

Not worth worrying about unless you have an application coming up in the near future.

 

Do what makes the most financial sense for the BT: if that means maxxing out the card on something you can't immediately pay off and want the 0% financing for, then do that.  Long term FICO-wise it's absolutely irrelevant, and any money which you save puts you further ahead financially, which is more important than short-term FICO worries.

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 700, TU 04 731, EX 98 725 (05/24/15)
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Valued Contributor
Posts: 3,096
Registered: ‎01-26-2012
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Re: CC bal and FICO

If any card and assume total util as well, there seems to be some magic numbers were it hurts more on a percentage basis.  Those numbers seem to be 10%, 30%, and 80%. 50% might also be.  Although the actual formula is actually much more complicated so these percentages may be illusionary.  I assume you are asking question as you are planning on maxing a card.  If that is case, keep it below 80%.

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Senior Contributor
Posts: 3,322
Registered: ‎05-05-2011
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Re: CC bal and FICO

So, if I do $6k on a $10k card, my util on that card w/be 60%, but my overall util will be about 10 to 11%.

 

My concern is that Amex is gonna freak. Really, they're the only one I'm concerned about. The 0% w/be on Barclay's, but so far my experience with them has been very good -- and they sent me the 0% offer. So, I think they'll be okay with my doing it.

 

I've just not carried a balance since I've rebuilt (except for my iPad :smileyhappy:), so I'm a little concerned about how the CCs are going to react when they soft me.

 

 

 

~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*
EQ FICO 750 | TU FICO 761 (Walmart) | EX FAKO 767 | Goal: 800+

Edits, funky spacing and spelling due to my iPad not getting along with the forum editor!

Moderator Emeritus
Posts: 11,107
Registered: ‎12-30-2011
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Re: CC bal and FICO

[ Edited ]

bichonmom wrote:

So, if I do $6k on a $10k card, my util on that card w/be 60%, but my overall util will be about 10 to 11%.

 

My concern is that Amex is gonna freak. Really, they're the only one I'm concerned about. The 0% w/be on Barclay's, but so far my experience with them has been very good -- and they sent me the 0% offer. So, I think they'll be okay with my doing it.

 

I've just not carried a balance since I've rebuilt (except for my iPad :smileyhappy:), so I'm a little concerned about how the CCs are going to react when they soft me.

 

 

 


Non-issue in my opinion as long as you start making payments regularly on the balance.  It's when cards get maxxed, and then *stay* maxxed that lenders start worrying.

 

In this case you're doing exactly what credit cards are designed for: short-term float.  Why would any lender get upset over that except to ask why you didn't use them instead?

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 700, TU 04 731, EX 98 725 (05/24/15)
Goal Score: 700 on EQ 04 (01/01/16)


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