@theREBIRTHofCREDIT wrote:
@Advise given...Always keep utilization @ 1-9% on revolving credit accounts (OK)
I have a HSBC mastercard with $300 limit ($189 balance)
I have a NY&C store card with $300 limit ($0 balance-haven't used in 2 yrs.)
I have a Dell Financial account with $1500 limit ($0 balance as of 11/07)
ALSO...car loan $14,000 balance and student loan $17,000 balance (installment loans)
Q1: As far as utilization is concerned, am I safe or should I pay down my HSBC card?
Q2: Should I pay to a $0 balance or ALWAYS keep 1-9% on ALL (revolving)?
Q3: How is installment loans factored into this utilization%?
Thankx in Advance
theREBIRTHofCREDIT
Q1: Pay down the HSBC to under 10%. The easy way to figure 10% is to knock the last zero off the credit limit --that's 10%. So that card should report under $30. You can use it through the month, just be sure to pay it down before it reports.
Q2: Only let half or fewer cards report a balance; the rest should be $0. So for 3 cards, only let one report.
Q3: Installment loans do not count in util --that's strictly on revolving credit. Don't worry about your installment loans. Just keep current on them. Avoid any consumer finance loans.
FICO looks at overall revolving utilization (ideally under 10%), and individual account utilization (the same.) So just because your overall is low, doesn't mean that you can have one card with a high balance, and not get penalized.
* 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