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Utilization & score question...

Contributor

Utilization & score question...

I have 1 credit card with a $200 limit. The balance is 195 (accdng to Equifax).

If I pay it off, and Equifax reports a 0 balance, will my credit score go up?

 

Current score 532

18 REPLIES
Established Contributor

Re: Utilization & score question...

Yes, you will receive a big jump. Your current utilization is at 98%. Since you have only 1 card, this is killing you. Although You aren't going to shoot up to a 600, I would expect a rather large increase.

Starting Score: 627 EQ, 621 TU - 11/15/08
Current Score: 778 EQ, 781 TU, 778 EXP 07/20/12 Lender Pull
Goal Score: 800 EQ & TU


Take the FICO Fitness Challenge
Senior Contributor

Re: Utilization & score question...

It will help.  How much depends on other factors on your report.  And for under $200, I highly suggest not carrying a balance on a high fee card....bites you in interest and FICO.

 

IMO

Credit Scoring 101 - Tuscani   *  Guide to Common Abbreviations
Frequently Requested Threads * FICO High Achievers  *  FICO Score Estimator


09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Moderator Emeritus

Re: Utilization & score question...


armyguy90 wrote:

I have 1 credit card with a $200 limit. The balance is 195 (accdng to Equifax).

If I pay it off, and Equifax reports a 0 balance, will my credit score go up?

 

Current score 532


Yes it should help but from now on use it sparingly every few months for a small purchase and pay in full after the statement posts and before the due date. If it reports a zero balance each month your score will actually suffer. On a $200 limit let no more than $18 (9% utilization) report each month.

 

 

(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".

Senior Contributor

Re: Utilization & score question...


marinevietvet wrote:

armyguy90 wrote:

I have 1 credit card with a $200 limit. The balance is 195 (accdng to Equifax).

If I pay it off, and Equifax reports a 0 balance, will my credit score go up?

 

Current score 532


Yes it should help but from now on use it sparingly every few months for a small purchase and pay in full after the statement posts and before the due date. If it reports a zero balance each month your score will actually suffer. On a $200 limit let no more than $18 (9% utilization) report each month.

 

 

(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".


Actually, you want to pay BEFORE the statement cuts.  On 99% of cc accts, the balance at statement CUT is what is reported to the CRA's.

 

But as marinevietvet mentioned...use it sparingly for small purchases to keep it active.

 

Depending on how long you've had it...ask for a CLI.  Most starter cards will give you a bump after you've had them for about 6 or so mos.



Starting Score: 02/2015 TU 709 - EQ 676 - EX 729
Current Score: 04/2017 TU 754 - EQ 757 - EX 747
Goal Score: 850

Bury me in the garden...last app 08.09.15

Valued Contributor

Re: Utilization & score question...


BungalowMo wrote:

marinevietvet wrote:

armyguy90 wrote:

I have 1 credit card with a $200 limit. The balance is 195 (accdng to Equifax).

If I pay it off, and Equifax reports a 0 balance, will my credit score go up?

 

Current score 532


Yes it should help but from now on use it sparingly every few months for a small purchase and pay in full after the statement posts and before the due date. If it reports a zero balance each month your score will actually suffer. On a $200 limit let no more than $18 (9% utilization) report each month.

 

 

(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".


Actually, you want to pay BEFORE the statement cuts.  On 99% of cc accts, the balance at statement CUT is what is reported to the CRA's.

 

But as marinevietvet mentioned...use it sparingly for small purchases to keep it active.

 

Depending on how long you've had it...ask for a CLI.  Most starter cards will give you a bump after you've had them for about 6 or so mos.


What marinevietvet was referring to is that having a 0 balance on all accounts report hurts your score as opposed to letting one or two accounts show a balance.  Unfortunately, I don't know if this is true or not if they account that reports a balance is your only revolving account.

Starting Score: EQ: 665 - TU: 687
Current Score: EQ: 749 - TU: ---
Goal Score: EQ: 760 - TU: 760


Take the FICO Fitness Challenge
Moderator Emerita

Re: Utilization & score question...

Yes, we're still hoping to hear back from someone with only one card, who has tried letting it report ~5% and then having it report $0.

* hint, hint * Smiley Wink
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Moderator Emeritus

Re: Utilization & score question...

BungalowMo wrote:

 

Actually, you want to pay BEFORE the statement cuts.  On 99% of cc accts, the balance at statement CUT is what is reported to the CRA's.

 

That is true if you want a zero balance to report. I was referring to a small balance reporting and being paid before the due date to avoid any finance charges. I could explained it a little better.   Smiley Happy

 

And the discussion continues whether those with only one CC get a bigger boost to their score by reporting a zero balance each month as opposed to a small amount of 1-9%. 

 

I'm with haulingthescoreup. Someone needs to volunteer!!!

 

Contributor

Re: Utilization & score question...

Hey well the credit card company updates on the 24th, and it will be updating from a $197 balance last month to a $2 balance this month on a $200 limit, so i will let you know of my score increase.

: )

Senior Contributor

Re: Utilization & score question...

So you will have a 1% uti ratio....please let us know what happens to score.

 

Next month....as HTSU hinted, we'd love to know what a zero balance shows on score for a CR with only 1 cc.

 

Smiley Wink

 

 

Credit Scoring 101 - Tuscani   *  Guide to Common Abbreviations
Frequently Requested Threads * FICO High Achievers  *  FICO Score Estimator


09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549