Reply
Established Member
Posts: 24
Registered: ‎07-20-2008
0

Utilization Question

Hey folks, Quick question about utilization. Is is strictly a percentage thing or is it based on actual dollar amounts? I have one open CC - First Premier. My limit is $250 and I just sent August's payment in to bring me down to an $8 balance (from $88). That brings me from roughly 30% to 3%. Will that help my scores any or because it's such a small number will the impact not be that much? I know I should have at least one more active account and in the next month or so will probably go for a secured card through BofA or Orchard, but I wanted to get this one paid down first. Thanks, JS
7/20/08 ; TU-547, EQ-554, EX-523
7/31/08 ; TU-561, EQ-558, EX-529
8/27/08 ; TU-598, EQ-571, EX-574
6/09 ; TU-653, EQ-589
10/16/09; TU-678, EQ-623
12/15/09; TU-681, EQ-627
4/30/10; TU-676, EQ-636
8/18/10; TU-697, EQ-642
2/06/12;TU-658
Established Contributor
Posts: 672
Registered: ‎07-05-2008
0

Re: Utilization Question

Utilization is measured as a percentage of your total revolving credit limits. Lowering your utilization from 30% to 3% will definitely give your score a bump.
Moderator Emeritus
Posts: 6,794
Registered: ‎09-29-2007
0

Re: Utilization Question



JackStraw wrote:
Hey folks, Quick question about utilization. Is is strictly a percentage thing or is it based on actual dollar amounts? I have one open CC - First Premier. My limit is $250 and I just sent August's payment in to bring me down to an $8 balance (from $88). That brings me from roughly 30% to 3%. Will that help my scores any or because it's such a small number will the impact not be that much? I know I should have at least one more active account and in the next month or so will probably go for a secured card through BofA or Orchard, but I wanted to get this one paid down first. Thanks, JS


Actual dollar amounts are irrelevant.  Only the percentage matters.
 
----------------------------
App free since 7/11/08.
TU 744 / EX 710 / EQ 694 (Starting to slip. :smileysurprised: )

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 based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). 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.