How Do I Increase My CL on Two Cards? [student]

[MarineVietVet]

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@Anonymous wrote:

Hey BungalowMo,

Thanks for the information! Looks like credit karma is crap? I'll update my FICO score using your link soon.

Right now, I think for my BoA account, I have a CL of 1500, and a balance of 270. For my Citi, I have a CL of 5500 (now), and a balance of ~1000 consistently. Should I be spreading this money around on my other card now, so they all have a balance of 10% of the CLs of my card? Or do you mean that I should have no debt on all my cards, and have one card with 10% of my total CL?

I always pay my CCs on time, and have not asked for a CLI until now.

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I also welcome you here.

I wouldn't say CK is crap. I go there for information.......just not for a FICO score. If you go to purchase your Equifax and Transunion scores at myfico do an internet search first for "myfico discount codes".  It will save you a few dollars.

Good luck to you.

(myfico)
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802

CC interest free as of 8/09
Time can heal all wounds and a low FICO.
"Hello my name is Sandy and I'm a recovering crediholic".

[creditwherecreditisdue]

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@Uborrow-Upay wrote:

THANK YOU, UncleJ, for the clarification and for your attitude regarding my response. 

CreditWhereCreditIsDue addressed your additional questions in the above post, but I'd like to add info about the Citi card.  I'm not familiar with the Platinum U product, but Citi is generally considered to be generous with credit limit increases on a regular basis (usually every 90 days), and in many cases without a hard inquiry on your credit report.  You can find further details on threads throughout this forum on this.

Citi LIKES frequent usage and rewards it.  Citi also is the issuer for many store cards, and if you treat Citi right, they'll respond in kind.  Something to think about for the long haul.

Make sure to use each of your cards every two - three months, even if it's just for a small purchase.  You'll want to keep them active, and not risk cancellation for non-use.

If you've got 3 cards now, for the optimum FICO score, two of those should have 0 REPORTED balance, and the remaining card some small REPORTED balance of less than either 1% or 9% (it's arguable which generates better scores, I believe, but it is indisputable that zeros across the board DROP your score).  And that doesn't mean you'll have to carry a balance, either.  Let one card report a balance, and then pay it off in full before the due date.

It sounds like you're on the right path, UncleJ.  Keep up the good work, and don't let your roomies eat up all the pizza!

Later!

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Actually it is <= 9% UTIL, the lower the better. Where total UTIL of zero leaves you FICO-wise is something that must be individually assessed. Everybody's situation is a little different on that one. Generally speaking if you are not in the stratosphere region of FICO achievement it is better to show some usage on your CBR's. If you are in a dirty scoring bucket it is important to show some usage.

OP, do you have studen loans that report? Or a car note? Or any other type of installment debt?

[Anonymous]

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Actually it is <= 9% UTIL, the lower the better. Where total UTIL of zero leaves you FICO-wise is something that must be individually assessed. Everybody's situation is a little different on that one. Generally speaking if you are not in the stratosphere region of FICO achievement it is better to show some usage on your CBR's. If you are in a dirty scoring bucket it is important to show some usage.

OP, do you have studen loans that report? Or a car note? Or any other type of installment debt?

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Sorry, what is UTIL? I couldn't find it on the abbreviations site. Does this mean that I should have less than 9% debt on my total credit?

I do have student loans, but since I have not graduated, those aren't in effect till 6 months after college (and I can worry about it then :/)

@Uborrow-Upay -  thanks for the information!

 Also, I don't know whether I should choose my Schwab Visa or my Platinum U card as my primary, does anyone have suggestions? Right now, I have accumulated 33,000 thankyou points on citi, but schwab will get me back into looking at investments for the future!

Again, thanks to all who are commenting!

-UncleJ

[haulingthescoreup]

UTIL = utilization, the percentage of the credit extended to you that you are currently using. Util is measured separately on both individual accounts and overall, both in revolving credit (CC's, smaller lines of credit) and installment. The revolving is the important part, so ignore the balances on your student loans (installment), other that paying the amount due promptly.

To figure your util, add up all the credit limits on your CC's and smaller LOC's. These are the credit limits, not the amount of available credit after a balance is subtracted. Now do the same with all the balances that are on your reports, or will be on your reports when each account updates. Divide the total balance by the total credit limit, and that's your revolving util.

And again, it's reported balances. If you wait until your statement posts to pay your bills, as sensible people would do, it will result in higher util. If you're seriously tweaking scores, pay your balances off before the lenders update your credit reports, which is generally (not always) on your statement dates. Do let one report a token amount --$10 or so --and then pay it off immediately. Your scores generally drop if everything reports $0.

The scoring formula rounds up, so 9.01% util would report as 10%. Most people do best with 9% (exactly) or lower revolving util. Also, many of us have gotten away with having one individual high util card, for instance with a BT on it, as long as the overall util is 9% or lower. Two or more high-util cards hurts scores, though.

Util is the part of the scoring formula that is most controllable by the consumer, assuming that you can scramble up the money to pay off your balances.

If you have the 2% cash back Schwab Visa, I'd make that the go-to. CCC's keep messing around with points programs, making the points harder to accumulate and more expensive to redeem. But cash is cash!



edited to clarify --coffee, then posting...

Message Edited by haulingthescoreup on 10-07-2009 04:02 AM

[creditwherecreditisdue]

UncleJ -

Since you may have SL's reporting I will lay it all out for you:

Optimal credit utilization for FICO scoring purposes is:

• Total revolving utilization > 0 and <= 9%, the lower the better, and
• Reporting a balance on less than half of your revolving TL's, and
• Reporting a balance on half or less of all TL's.

Anyway you get there is fair game. You only need have one revolving TL report a balance.