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Utilization Theories

Valued Contributor

Re: Utilization Theories


SnackTrader wrote:


Believe me, if you want an 800 score, all else being equal, you want utilization under 10%. I'm not saying you can't get there with higher utilization than that, but I am saying that putting your utilization under 10% will always get you a score increase. 20% or 40% is a good start, but you HAVE to get lower to get the best impact. 

 

I understand that the question involves other utilization theories, but all of that is going to speculation and subject to individual experiences. The 1% - 9% theory is not subject to individual experiences (except in extreme situations of 400 and 500 credit scores, where utilization is the least of your worries). So that's where my advice ends. 


I am a few years of even being able to worry about an 800 credit score!  Maybe even 4 years and 11 months!  I have read somewhere before that too low is not a good thing either, but I don't remember if that was about utilization or limits.  I will say that there does not seem to be much difference in my score when it is 1% or 19%.  Before I loaned my sister my card my utilization was almost always lower than 10%.  Currently my portion of the debt is 1% and I know that my score is lower from her portion!  Since I don't need or want new credit right now I am not too worried.  I am in gardening mode anyway!  People should understand that gardening is a very useful way to insure they get the best results.  I want my AAOA and limits to grow to insure that when I can get that really good card that it comes with a good limit and low interest!  (Low interest is important if I get a mortgage or buy a house outright and need to carry a balance for a time period.  Also it will mean that with that good card if I later want to use a promotion such as 0% for up to 18 months that I will have no worries about interest!)

It is by will alone I set my mind in motion.....
Always follow these rules: Only take a HP for a new account. Always use the best rewards card for that reward category. Don't close a card unless you know you really should. Never use more than 35% of a credit limit. Recon as much and as best you can. Use the introductory period to the best advantage. Get the signup bonus. Whenever possible PIF or balance transfer so you pay less in interest. Never give an excellent rating when it is actually the norm. Always look for a discount as more is always better.
Always accept candy from strangers because they have the best candy or from people you know have good candy.
Established Contributor

Re: Utilization Theories

Experian shows your hightest unpaid balance monthly and the amount paid. So if you view the report it shows the statement amount reported and next month it shows the payment (one month behind) with the new outstanding balance reporting as well. So Yes, the Creditors see not only your history but your payment amounts as well.

Starting scores 01/02/2012 EQ 707(Fico) TU 733(Fico)XP 735 (FAKO)
Updated scores 05/01/17 EQ 824, TU 812 EXP 810 (all Fico scores) Remember the Three P's: Pay early in Full, Pay on Time, Patience
Regular Contributor

Re: Utilization Theories

I wonder sometimes if the companies would see the value in a cardholder racking up a large purchase and paying it down in a gradual, but more than the minimum payment, way. Or in other words, using credit as credit. 

 

An anecdote that I relayed in another thread but is relevant here:

 

My brother racked up 10k on his Amex when he was between jobs for a few months. He paid the amount off at maybe 4x the minimum payment each month until it was gone. This took him about 18 months. 8 months into it Amex let him know that they lowered his interest and raised his limit by 5k. He had never asked for these things. 


Starting Score: EXP 615 | TU 610 | EQ 635
Current Score: EXP 719 (lender pull 10/15) | TU 707 | EQ 700 (lender pull 10/25)
Goal Score: 740
Highlighted
Valued Contributor

Re: Utilization Theories


bettercreditguy1 wrote:

Experian shows your hightest unpaid balance monthly and the amount paid. So if you view the report it shows the statement amount reported and next month it shows the payment (one month behind) with the new outstanding balance reporting as well. So Yes, the Creditors see not only your history but your payment amounts as well.



Only EX does this and only if the creditor bothers to report the details. Some do, some don't.  Further, EX has only been doing this since summer of 2010 so there is limited statistical data available to create a capacity type metric though I have no doubt this will at some point happen. In my case Citi started reporting min payment due but not total paid while Chase and WF reports both.

 

 


I have reestablished credit over the last couple years
so my moniker is, well, rather out of date.

WM Discover $1800, WF Plat 12k, Chase Freedom Siggy18k, Amex Plat (60k H/B), Citi AA EWMC 25k
Valued Contributor

Re: Utilization Theories


SnackTrader wrote:
Believe me, if you want an 800 score, all else being equal, you want utilization under 10%. I'm not saying you can't get there with higher utilization than that, but I am saying that putting your utilization under 10% will always get you a score increase. 20% or 40% is a good start, but you HAVE to get lower to get the best impact. 

I understand that the question involves other utilization theories, but all of that is going to speculation and subject to individual experiences. The 1% - 9% theory is not subject to individual experiences (except in extreme situations of 400 and 500 credit scores, where utilization is the least of your worries). So that's where my advice ends. 


 

My present EQ FICO with a utilization of 10% is in the 800s. That's with a large balance on one card and a small on another. TU doesn't use the former for utilization, so you would expect a higher score because of it, but no. EX though is nicer.

 

Frequent Contributor

How can you find out what's being reported by your lender...

How can you find out what's being reported by your lender/creditor to the Credit Bureaus?

Rebuilding...been out of the game for a minute. Now, after suffering I'm back with greater wisdom. Scores: Currently @ around 6 teens to 20's, across all three EQ,TU, EX
Moderator

Re: How can you find out what's being reported by your lender...


WarJar101 wrote:

How can you find out what's being reported by your lender/creditor to the Credit Bureaus?


Pulling the reports; however, admittedly, the reports are a bit sanitized and I've always assumed that things can and likely are being reported which aren't demonstrated on the CR that we see, or possibly that the lenders see either.

 

I think SnackTrader put it best recently: if there's something on the report you can see, assume that the lenders can as well.

 

Everything else starts devolving into either black or tinfoil-hat discussions I think Smiley Happy.

 

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 758, EX 2 758, EQ 8 795, TU 8 762, EX 8 786 (7/28/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


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Valued Contributor

Re: How can you find out what's being reported by your lender...

 


WarJar101 wrote:

How can you find out what's being reported by your lender/creditor to the Credit Bureaus?


Annualcreditreport.com

 

You can get your report for free from each of the bureaus once every 12 months. 


In My Wallet: Amex BCP (12/12) $50,000, Chase Freedom (12/12) $16,500, Cap1 Quicksilver (6/12) $14,000, Barclaycard Rewards (5/13) $10,500, Citi Prestige (4/16) $30,000

Last App: June 27, 2015