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Established Contributor
Posts: 578
Registered: ‎06-18-2007
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Re: Utilitization?

J,
 
Only because I like you :smileyvery-happy:
 
Utilization:  how much of your available credit on your cards you're actually using.
 
So say you have just 1 CC with a $5000cl, and you're running a balance of $2500, that 50% util.  You're using 50% of your available credit.
 
The same principle is applied if you have multiple CCs.
 
Say now you have 3
 
CL CC1 = $5000
CL CC2 = $2500
CL CC2 = $1000
 
Total available credit = $8500
 
Now if
CC1 Balance is $2500 (50% util)
CC2 Balance is $500 (20% uitl)
CC3 Balance is$100 (10% uitl)
 
You overall util is 3100/8500 or approx: 36.5% 
 
What we've learned on here is that to max out your FICO points you have to look at both your overall Util and per card Util and keep both between 1-9%.  While 30% is good util, but you seem to get the most points with 1-9%.  Which is why you'll see it suggested on here that if you can't get them all to 1-9% through payments.  Say one is high and the other is low, one option is to shuffle them around.  That's a personal decision, and would depend on what you're objectives are and how much time you have.
 
So just remember this:
 
1-9, on time, all the time!
 
Hope this helps
 
-trini
 
 
Frequent Contributor
Posts: 278
Registered: ‎04-29-2007
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Re: Utilitization?



trinigal wrote:
J,
 
Only because I like you :smileyvery-happy:
 
Utilization:  how much of your available credit on your cards you're actually using.
 
So say you have just 1 CC with a $5000cl, and you're running a balance of $2500, that 50% util.  You're using 50% of your available credit.
 
The same principle is applied if you have multiple CCs.
 
Say now you have 3
 
CL CC1 = $5000
CL CC2 = $2500
CL CC2 = $1000
 
Total available credit = $8500
 
Now if
CC1 Balance is $2500 (50% util)
CC2 Balance is $500 (20% uitl)
CC3 Balance is$100 (10% uitl)
 
You overall util is 3100/8500 or approx: 36.5% 
 
What we've learned on here is that to max out your FICO points you have to look at both your overall Util and per card Util and keep both between 1-9%.  While 30% is good util, but you seem to get the most points with 1-9%.  Which is why you'll see it suggested on here that if you can't get them all to 1-9% through payments.  Say one is high and the other is low, one option is to shuffle them around.  That's a personal decision, and would depend on what you're objectives are and how much time you have.
 
So just remember this:
 
1-9, on time, all the time!
 
Hope this helps
 
-trini
 
 


thanks alot that was a big help, im in the process of building my credit now so im start with the BOA secured cared and a low balance. SO say i have a $1000 limit i would want to keep the balance at about $100?

Starting Score: 643
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Established Contributor
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Registered: ‎06-18-2007
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Re: Utilitization?



jenkins wrote:

thanks alot that was a big help, im in the process of building my credit now so im start with the BOA secured cared and a low balance. SO say i have a $1000 limit i would want to keep the balance at about $100?



Yup! At about $90 actually.:smileyvery-happy:
Frequent Contributor
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Re: Utilitization?

ok thanks alot im hoping this BOA card and everything else im doing will help bring my scores up ive been sitting at 541 for a long time now :smileysad:

Starting Score: 643
Current Score: 657
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Established Contributor
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Re: Utilitization?

Honey, I'm just a few points ahead of you.  Just keep plugging at it and it'll improve.  You're here now, you'll learn and it'll improve.  Everything is a process.
 
 
Frequent Contributor
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Re: Utilitization?

another question whats a good method of paying off? should u pay the min? or pay as much as i can? i was told paying it all off at once doesnt help your score as much as making smaller payments

Starting Score: 643
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Established Contributor
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Registered: ‎06-18-2007
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Re: Utilitization?



jenkins wrote:
another question whats a good method of paying off? should u pay the min? or pay as much as i can? i was told paying it all off at once doesnt help your score as much as making smaller payments


Others will have to chime in here, but that doesn't make sense to me. If FICO is a snapshot of your credit profile at the point you pull it, then how you pay down should not matter.  If in January your util was 95%, your score will reflect that picture, if in February you're down to 5% your credit score will reflect that picture. FICO doesn't take into account what was you balance the month before.
 
So my suggestion, pay as much as you can every month.  If you stay at 1-9% that's should not be so much of a problem.
 
 

 
Frequent Contributor
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Re: Utilitization?

ok thank you very much!!

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Established Contributor
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Registered: ‎06-18-2007
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Re: Utilitization?

dang you're quick!
Frequent Contributor
Posts: 278
Registered: ‎04-29-2007
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Re: Utilitization?

haha it was luck caught you as soon as you posted, and the fact im bored with nothing to do some im on these boards like an eagle lol

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