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Regular Contributor
Posts: 105
Registered: ‎10-31-2010
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Explain 9% uti for optimal FICO

I need a better understanding of the credit card affects on FICO scoring.  I have a CC that I just paid down from 67% uti to 9%.  I did not pay the remaining balance yet.  The CL is $2100 - reported balance was $189.00.  I have the used the card for minor purchases with plans to pay again this month.  Do I need to only pay for the purchases and carry the $189 balance to keep the optimal FICO?

 

I have read these threads about how to "play the game," but I don't quite get it yet.  Can someone help me explainn?

Contributor
Posts: 83
Registered: ‎01-08-2008
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Re: Explain 9% uti for optimal FICO

There is no game. Pay off your card, and avoid interest. 

Regular Contributor
Posts: 105
Registered: ‎10-31-2010
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Re: Explain 9% uti for optimal FICO

There is a certain skill to the optimal score.  I do know that.  I was actually advised NOT to pay the card in full - at least until it reported - in order to get optimal FICO increases.  That is the information I am seeking.

Valued Contributor
Posts: 2,266
Registered: ‎07-23-2012
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Re: Explain 9% uti for optimal FICO

What are your cards? Balances? 

 

To get optimal fico score you are playing the game of utilization. 

 

Pay off all your cards except one. And keep it 1-9 percent of your total credit available. 

 

For example. 

My credit limit reporting is 8100 so I need to keep it 1-729 reported on one card. 

From what ive read 7% gets you the most score for your balance. (get it bang for buck)

Current: Discover Fico 701 3/15 Walmart Fico 684 1/15

Inquiries (24 Months): EQ 5 TU 1 EX 1 | Most Recent: 03/23/2015
Over 12 Months:6


2014 Goals:
Lower Utility
15% right now, but going up soon :smileysad:
Freedom Signature

Amex Zync(Unicorn)
Chase Freedom$1500
Discover IT$6400
Citi Diamond Preferred$6000
Citizens Mastercard$7000
Senior Contributor
Posts: 3,318
Registered: ‎05-05-2011
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Re: Explain 9% uti for optimal FICO

For the highest FICO, have all of your CCs report a zero balance, except one reporting a bal <9% of that card's CL.

 

You can use the other CCs as much as you want during the month. Just PIF *before* the statement cuts and be sure not to use the card for a few days, so that nothing new posts between your payment and the statement cutting.

 

Just as an example, I missed a couple of payments before the statement cut this last month because of a hectic schedule. One CC reported a $12 balance on a $2500 CL and my FICO dropped 10 points. A second one just reported $190 bal on $3000 CL and it dropped another 6 points. As you can see, these are very small balances on decent CLs, and yet my FICO was affected by 16 points total for the 2 cards. Of course, next month, the score should bounce back after they report a zero balance again. If the balances were higher, the FICO drop would have been even greater.

 

 

 

 

~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*
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!

Established Contributor
Posts: 869
Registered: ‎07-04-2012
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Re: Explain 9% uti for optimal FICO


bichonmom wrote:

For the highest FICO, have all of your CCs report a zero balance, except one reporting a bal <9% of that card's CL.

 

You can use the other CCs as much as you want during the month. Just PIF *before* the statement cuts and be sure not to use the card for a few days, so that nothing new posts between your payment and the statement cutting.

 

Just as an example, I missed a couple of payments before the statement cut this last month because of a hectic schedule. One CC reported a $12 balance on a $2500 CL and my FICO dropped 10 points. A second one just reported $190 bal on $3000 CL and it dropped another 6 points. As you can see, these are very small balances on decent CLs, and yet my FICO was affected by 16 points total for the 2 cards. Of course, next month, the score should bounce back after they report a zero balance again. If the balances were higher, the FICO drop would have been even greater.

 

 

 

 


Cannot agree more with you. +1+1+1+1 :smileyhappy:

 

Same happened to me 2 months ago. I only had 4 cards and my CapOne reported 7 dollars making it 2 cards with balances and 2 with 0 util. My score dropped 14 points.
 Util was 11% I think at that time.

 

Fico Scores: . Walmart TU 748 . Garden 8/19 2014 .

Cap One Journey 500 | Discover IT 500 | GE Home Design 5.6k | GE HHGREGG 5k | Amex Zync NPSL | Amex BCE 6k | Citi Forward 4.2k | Citi Dividend 3k | GE BrandsMart 1k | GE Lowes 8.5k | Discover Walmart 7.5k | Barclays Apple 2.5k | BoA CR 2.7k | CSP 7.2k | Platinum Prestige 5k | IT Chrome 4k | Slate 2.3k |
Contributor
Posts: 211
Registered: ‎07-02-2012
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Re: Explain 9% uti for optimal FICO

I also want more information on this subject. I have 3 cards and all are reporting balnces below 10%. Should i keep balances on only one and payoff rest? Fromthe replies of this thread it looks better to use only one card and keep other cards in locker unless required.

Walmart TU-724 on 12-2012
EX-707 on 08-2012
EQ-668on 08-2012
_________________________________
Wallet - Discover 1500 | Chase Freedom 1500 | OldNavy Visa 2750 | Walmart 2000 | Amex BCE 6000 | BoA Visa Sig 5000 | Chase Marriott 5000 | Amex Hhonor 2000 | CSP 5000
__________________________________________
Valued Contributor
Posts: 3,096
Registered: ‎01-26-2012
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Re: Explain 9% uti for optimal FICO

I'm on iPad so I wI'll try and keep thiS short.  Util is calculated on reported balance.  Reported balance usually happens once a month.  Most common report date is around your statement date.  Use your card as much as you want, but pay what you need to so payment hits just before statement date to whatever you want reported balance.  Not all cards report on statement date and cards don't always just report once a month.  This is where paying attention to how your cards report come in as well as research.  1-9% util of both one card and total utilization with the rest of your cards reporting 0 balance is ideal for highest fico.

               LIMITS IN CARD DESCRIPTIONS
Established Member
Posts: 20
Registered: ‎06-05-2012
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Re: Explain 9% uti for optimal FICO

Hi there.

Would this also work out with a two credit cards (BofA secured 99/500 and Discover More) and one charge card (Zync) configuration?

 

I am thinking of paying the two credit cards in full before statement date and putting enough on the Zync to get to a 1-9% overall util rate.

 

FICO scores: EQ 750 (Jul 2012)
Wallet: BofA Cash Rewards $2k, BofA Travel Rewards $7.5k, Discover It $5k, Amex Zync NPSL
Status: Attending to the garden.
Regular Contributor
Posts: 143
Registered: ‎07-21-2012
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Re: Explain 9% uti for optimal FICO

[ Edited ]

Crashem wrote:

I'm on iPad so I wI'll try and keep thiS short.  Util is calculated on reported balance.  Reported balance usually happens once a month.  Most common report date is around your statement date.  Use your card as much as you want, but pay what you need to so payment hits just before statement date to whatever you want reported balance.  Not all cards report on statement date and cards don't always just report once a month.  This is where paying attention to how your cards report come in as well as research.  1-9% util of both one card and total utilization with the rest of your cards reporting 0 balance is ideal for highest fico.


I have two cards, so keeping one reporting zero balance and the other reporting a balance would be the best way to boost your FICO score?

 

Example 10% of my first card $2,000 = $200, and 10% of my second card is $240. Add both CLs gives me $4,400 and 10% of that is $440, the same amount if you only have a 10% balance on each card individually (isn't it better to have a balance across cards?). Where does having a zero come into play? Wouldn't the company report your zero balances which from what I read is not bad but not good either.

 

So far I see two schools of thought, the people who never want to carry any outstanding balances reported and they payoff and push payments before the statement cut off date. And now I see the only keep one or half of your cards with a zero balance people. :smileyfrustrated: where do you get your information? Or is this all just theory.

 

 

Starting Score: EX: 736 FAKO | TU: 757 FICO | EQ 730 FICO
Current Score: EX: 736 FAKO | TU: 750 FICO | EQ 730 FICO
Goal Score:     EX: 750 FICO | TU: 750 FICO | EQ: 750 FICO
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