Utilization really IS important

[Anonymous]

For anyone who doubts the advice that utilization is important, dont doubt it. I've been paying mine down and boy is it ever helping my score! It's like watching a 3 line slot machine spinning. I've got 2 socres now in the good, and EQ is just a tiny bit out of that range and should spin to the good in a day or so. I still have about $1000-$1100 scheduled to come off my balances by Feb 1st, so I'm hoping I wind up around 700 for all 3. It's ironic, I used to dread paying bills on payday. Now, I look forward to it because I know my goal is in sight.

[azguy13]

I agree, it is extremely important. Due to some medical issues with DW, I have a decent amount of CC debt. For some reason, I charged it instead of going on 0% interest payment plans with the hosptial. But I digress. I just bruoght my Discover dwon from 73% to 17% and my score jumped 6 points. Overall, I have about $25K in CC debt. Luckily, I will have it paid off within about 6 months and my scores should jump. 

[Anonymous]

My credit issues, which are now part of my past thank goodness, stem from medical stuff. I got the last collection deleted with a PFD. I was really dissappointed when my scores didnt immediately jump. then I realized my utilization was holding me back. Been paying that down and it really helps. $750 came off my EX report yesterday and that score jumped 29 points.

[azguy13]

---

@Anonymous wrote:

My credit issues, which are now part of my past thank goodness, stem from medical stuff. I got the last collection deleted with a PFD. I was really dissappointed when my scores didnt immediately jump. then I realized my utilization was holding me back. Been paying that down and it really helps. $750 came off my EX report yesterday and that score jumped 29 points.

---

I am glad your score is reboundnig and I hope whatever the medical conditions that led to your collections have been fixed/cured. 

If $750 raised your score 29 points, I assume you have a small amount of credit extended to you. If you do not mind me asking, are you in a position wheer you can request CLIs or even app for a new card to lower your overall UTL? 

[Anonymous]

Right now, available credit is around $18k but 3 store cards with Synchrony comprise $10500 of that. I had 3 main credit cards that the utilization was high on. I'm an AU on a WF card and had to get some tires and a few other things wich pushed it high as well. Just paid it off which was the $750 drop. Limit on it is $1k. My 3 main cards I was in the upper 80% on but had whittled them down to 70%. Friday I will pay $600 on one which drops it to 0%. $300 on another that drops it down around 30% leaving the 3rd at 70%. I will pay $500 on it Feb 15th, dropping it down to just under 40%. By March 15th barring some catastrophe, I'll have all of them at 0%. What really helped was just using the snowball method. Paying small balances off, so that I could focus directly on the big ones.

Edited to add that the card I'm paying the $600 on Friday to make it PIF is a Cap 1 QS1. I'm hoping once I get to $0 they will give me a CLI on it. I will start running everything through it, paying it off totally a few times a month. I've thought a lot about where I want to get. I really think I want to get a Venture card. Hoping once my scores get to 700 or better, that I can possibly get one.

[sgs71]

My scores took a hit due to charging some things for Christmas.  Making large payments, so I'm ready to see them rebound!  Ugh!  Honestly I feel you when you say you look forward to paying your bills!  I'm the same way.  A year ago, I was so frustrated that I didn't care if things were late because I felt like it didn't matter anymore anyway, damage is done.  Well, I haven't had any late payments for 8 months, what a difference it made!  It's fun to watch the progress for sure

[Anonymous]

---

@sgs71 wrote:

My scores took a hit due to charging some things for Christmas.  Making large payments, so I'm ready to see them rebound!  Ugh!  Honestly I feel you when you say you look forward to paying your bills!  I'm the same way.  A year ago, I was so frustrated that I didn't care if things were late because I felt like it didn't matter anymore anyway, damage is done.  Well, I haven't had any late payments for 8 months, what a difference it made!  It's fun to watch the progress for sure

---

My EQ score just updated, 666. The other 2 are 671 and 674. In a few days I should have another $1k coming off. If the simulator is close to being correct, by March I'll be  in the 720s. I feel like standing on my roof singing "Break on through to the other side" by The Doors.

[takeshi74]

---

@Anonymous wrote:

For anyone who doubts the advice that utilization is important, dont doubt it. 

---

People who doubt the standard info aren't likely to change their minds based on just one thread.  You always have to consider your sources.  There are a lot of people that don't have a good grasp of causality and pay down one or more balances, see little improvement in scores or a drop and assume a causal relationship without fully understanding what was going on.  Additionally, rebucketing can confuse the matter when it happens.

Revolving utilization falls under Amounts Owed which is the second biggest factor.

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

Granted, it's not the only thing that falls under Amonts Owed but it does have a significant impact.

[Thomas_Thumb]

---

@Anonymous wrote:

Right now, available credit is around $18k but 3 store cards with Synchrony comprise $10500 of that. I had 3 main credit cards that the utilization was high on. I'm an AU on a WF card and had to get some tires and a few other things wich pushed it high as well. Just paid it off which was the $750 drop. Limit on it is $1k. My 3 main cards I was in the upper 80% on but had whittled them down to 70%. Friday I will pay $600 on one which drops it to 0%. $300 on another that drops it down around 30% leaving the 3rd at 70%. I will pay $500 on it Feb 15th, dropping it down to just under 40%. By March 15th barring some catastrophe, I'll have all of them at 0%. What really helped was just using the snowball method. Paying small balances off, so that I could focus directly on the big ones.

Edited to add that the card I'm paying the $600 on Friday to make it PIF is a Cap 1 QS1. I'm hoping once I get to $0 they will give me a CLI on it. I will start running everything through it, paying it off totally a few times a month. I've thought a lot about where I want to get. I really think I want to get a Venture card. Hoping once my scores get to 700 or better, that I can possibly get one.

---

Good work on paying down your balances!

Look forward to additional score increases as you continue. Getting to PIF status might help with future CLIs but the real benefit is no more interest payments.

The impact of high utilization is on a sliding scale. Going from the upper 80s to 70% on a per card basis likely crosses a scoring threshold. Not sure what your aggregate CC utilization is at the moment. Aggregate utilization has a strong affect on score. You should see score gains related to this factor alone as your aggregate UT% drops. Commonly accepted thresholds are: below 50%, 30% and 9%. There may be a score benefit crossing below 20% but that more questionable.

Longer term it will help your score if some of your cards report a zero balance.

Either don't use all of them in a given month or PIF a couple cards before the statement cut date. Either way your statement will then show "0" balance and be reported as such to the CRAs. Note: There is a reason code on CRA reports of: "too many open accounts reporting a balance" - using credit on all your CC accounts is considered risky and can cost you 10 or 15 points relative to allowing a balance to report on only one or 2 cards. [impact of # cards reporting on score is profile dependent]

[Anonymous]

---

@Thomas_Thumb wrote:

---

@Anonymous wrote:

Right now, available credit is around $18k but 3 store cards with Synchrony comprise $10500 of that. I had 3 main credit cards that the utilization was high on. I'm an AU on a WF card and had to get some tires and a few other things wich pushed it high as well. Just paid it off which was the $750 drop. Limit on it is $1k. My 3 main cards I was in the upper 80% on but had whittled them down to 70%. Friday I will pay $600 on one which drops it to 0%. $300 on another that drops it down around 30% leaving the 3rd at 70%. I will pay $500 on it Feb 15th, dropping it down to just under 40%. By March 15th barring some catastrophe, I'll have all of them at 0%. What really helped was just using the snowball method. Paying small balances off, so that I could focus directly on the big ones.

Edited to add that the card I'm paying the $600 on Friday to make it PIF is a Cap 1 QS1. I'm hoping once I get to $0 they will give me a CLI on it. I will start running everything through it, paying it off totally a few times a month. I've thought a lot about where I want to get. I really think I want to get a Venture card. Hoping once my scores get to 700 or better, that I can possibly get one.

---

Good work on paying down your balances!

Look forward to additional score increases as you continue. Getting to PIF status might help with future CLIs but the real benefit is no more interest payments.

The impact of high utilization is on a sliding scale. Going from the upper 80s to 70% on a per card basis likely crosses a scoring threshold. Not sure what your aggregate CC utilization is at the moment. Aggregate utilization has a strong affect on score. You should see score gains related to this factor alone as your aggregate UT% drops. Commonly accepted thresholds are: below 50%, 30% and 9%. There may be a score benefit crossing below 20% but that more questionable.

Longer term it will help your score if some of your cards report a zero balance.

Either don't use all of them in a given month or PIF a couple cards before the statement cut date. Either way your statement will then show "0" balance and be reported as such to the CRAs. Note: There is a reason code on CRA reports of: "too many open accounts reporting a balance" - using credit on all your CC accounts is considered risky and can cost you 10 or 15 points relative to allowing a balance to report on only one or 2 cards. [impact of # cards reporting on score is profile dependent]

---

Right now, my total utilization across all cards is 18%. However, the 3 CRAs have not updated to reflect that yet. TU still has it around 31%.  EQ has me around the same. EX has updated enough to show me at 25%. I also recently got a $3000 CLI which hasnt updated on any of the CRAs yet. Tomorrow, I will be paying around $1100 on 3 cards. 2 of which will be paid down to $0, the third will have it's utilization dropped to 50%. That will leave me at 13% total utilization with 3 cards left reporting a balance. One at 65%, one at the 50% and the last one is 14%. I learned my lesson on CC usage though.