Utilization Question

[Anonymous]

My current overall utilization is 13% with several cards having $0 balances.

I hit my spend goal on my venture and utilization is 50% on that one card.   If I let that balance post at 50% usage on 1 of my cards, will it drop my scores a good bit?

I've always kept my usage low on my cards or PIF at the end of each month.  I've just never had a card carry that much utilization before so I wanted to ask.

Was gonna have the entire balance paid around the end of Feb but was just curious. 

Thanks!

[Mattopotamus]

No one can tell you for certain how much it will dip, but anything over 30% on a single card will lower your scores.

[bch238]

FICO scoring takes into account your overall utilization and the utilization of the individual cards.  Having any card above 30% is a negative factor.  The effect worsens as the percentage goes up, so 50% on one card will have a more signficant effect.  It could be as few as 10-15 points, or it could be a lot more more depending on the rest of info in your file.

[lg8302ch]

It really all depends on each individual profile.  For me a single card with 50% or more has almost no influence but more than 50% of accounts with balances does. If you do not plan to app for anything why don't you test it out? Fico has no memory and once you pay down you get all the points back. This is how I found out with my profile...I have done some really hard core testing 😜

[Anonymous]

Yes unforunately your score will drop not sure how much but at least 3 to 8 points, maybe more if it's Equifax, they can be brutal.  Always work to keep ALL of your card under 30% or else you will be dinged for each card over 30% regardless of your overall Utilization.  That's one reason people have to watch closely when doing the SCT, they get these small limits and they use the card and they are at 50% of their CL..  Definitely not your case, but just worth noting.  

But  even if your score drops, it will go right back up as soon as you get it to 30% or under.  No long term impact.

[Anonymous]

It will go down but utilization part of the score is based on a snapshot. So when you pay it down and let it report, your score will be back up again

[Thomas_Thumb]

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@lg8302ch wrote:

It really all depends on each individual profile.  For me a single card with 50% or more has almost no influence but more than 50% of accounts with balances does. If you do not plan to app for anything why don't you test it out? Fico has no memory and once you pay down you get all the points back. This is how I found out with my profile...I have done some really hard core testing 😜

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+1 - Impact is highly dependent on profile AND aggregate utilization

If aggregate utilization is maintained under 9%, utilization on a per card basis may possibly be muted. In general, it is best to stay under 30% but many profiles report no score change if an individual card is in the 30% to 49% range as long as aggregate utilization is maintained low (say below 9%).

OP - If you usually keep aggregate utilization under 9%, the spike to 13% will cost some points regardless of the one card.

My guess is going above 50% may cost the OP 10 to 15 points - but, as said up thread, utilization is point in time so OP should feel free to test and see how the profile reacts. If there is an impact it will self correct the next month if utilization is reduced.