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Does Percentage of CC Utilization matter ??

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Anonymous
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Does Percentage of CC Utilization matter ??

...when you pay off the balance within 30 days? Or 60 days? Thank you.
Message 1 of 5
4 REPLIES 4
Anonymous
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Re: Does Percentage of CC Utilization matter ??



karlos wrote:
...when you pay off the balance within 30 days? Or 60 days? Thank you.

 
Utilization is figured on the day your accounts reprt to the credit bureaus.  Say for example all cards repot on the first of the month nd you are at 90% uti.  You will take a hit.  High utilization can be counteracted by paying off balances and allowing time forthechage to be reflected on your CRs

Message 2 of 5
Anonymous
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Re: Does Percentage of CC Utilization matter ??

UTL is the snapshot at the time the report is pulled.

So if you charge $800 on a $1000 CL and let it report (opps)
80%
Pay 400
40%
Pay 350
5%.


FICO supposedly does not have a memory-

Keep UTL under 10%
Message 3 of 5
Anonymous
Not applicable

Re: Does Percentage of CC Utilization matter ??

Thanks, so let me make sure i understand. Lets say, i use/utilize my CC every day, but as long as it's paid off before my balance reports, it will not affect my Fico?
Message 4 of 5
John060675
Valued Contributor

Re: Does Percentage of CC Utilization matter ??

The goal is to keep it under 10%.  I just pulled my FICO report, and one of the derogs is that I have 13% utilization.  That knocked some points off.
 
Utilization under 10% will keep the scores increasing (looked at as if you are responsible with credit), 10% and over will lower your score.
 
Let me add one thing........there are 2 schools of thought about PIF each month.  There is a lot of people who think PIF each month so it reports $0 helps a lot.  Then there are people who think keeping a small balance on the cards each month is good.  Which one is right?  Not sure.

Starting Score: 583 EQ, 612 EX, 569 TU
Current Score: 658 EQ, 648 EX, 618 TU
Goal Score: 720 EQ, 720 EX, 720 TU


Take the myFICO Fitness Challenge
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