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Established Contributor
rifleman
Posts: 565
Registered: ‎06-11-2007
0

you lose 1 point for every percent of your credit limit that you use.

Can anyone validate this claim? I got it from CNN.com
http://money.cnn.com/galleries/2007/pf/0705/gallery.credit_score/index.html

There is talk here about keeping utilization between 1 and 9 percent. Would it be ideal then to keep balances most like 1-2% utilization?

It seems like you get the max points for having the absolute lowest utilization possible, and every point you add subtracts one point from the possible points you can earn in a month.

That also brings me to another question, which is how many points is your Fico Likely to earn per month if your utilization stays 5% or below vs 10% and below if you have no lates or anything else?
Established Contributor
rifleman
Posts: 565
Registered: ‎06-11-2007
0

Re: you lose 1 point for every percent of your credit limit that you use.

bump
Moderator Emeritus
fused
Posts: 16,373
Registered: ‎03-12-2007
0

Re: you lose 1 point for every percent of your credit limit that you use.



rifleman wrote:
Can anyone validate this claim? I got it from CNN.com
http://money.cnn.com/galleries/2007/pf/0705/gallery.credit_score/index.html

There is talk here about keeping utilization between 1 and 9 percent. Would it be ideal then to keep balances most like 1-2% utilization?

It seems like you get the max points for having the absolute lowest utilization possible, and every point you add subtracts one point from the possible points you can earn in a month.

That also brings me to another question, which is how many points is your Fico Likely to earn per month if your utilization stays 5% or below vs 10% and below if you have no lates or anything else?

Yes, 1-9% is good but would 1-2% be better, I'm not sure. Maybe! No telling how many points though. FICO does not have a score for historical untilization%'s. What matters is your utilization% at the moment the score/report is pulled.
Credit Profile -
FICO 08 Scores (11-08-2014): EQ 818, EX 817, TU 822
All three scores were 850. Lost points for not having an open installment TL. So, BE WARNED!!!!!
Credit History: 26+ years ~ AAoA: 12 years ~ Util: 1% ~ Inqs: EX 1

Established Contributor
Revike
Posts: 720
Registered: ‎05-04-2007
0

Re: you lose 1 point for every percent of your credit limit that you use.

[ Edited ]
As far as I know, the "1 point for each percent" statement is untrue. Those who have graphed their FICO scores report that score changes tend to happen at certain utilization index points (10%, 30%, 50%, etc.). I haven't seen any confirmation that utilization changes "in between" (such as paying down from 29% to 22% utilization) have any effect on scores. Plus, if inquiries and new accounts are added in order to decrease utilization, the benefit of the utilization decrease will be diluted. I think the CNN story was just trying to create an oversimplified guideline.

Message Edited by Revike on 07-31-2007 12:16 PM
Valued Contributor
TheNewWorldMan
Posts: 2,374
Registered: ‎03-15-2007
0

Re: you lose 1 point for every percent of your credit limit that you use.

I'd say one point per percent of utilization is a good ballpark estimate, once you go over 9%.  Your actual point gain or loss will vary based on the rest of your credit report, overall age of credit accounts, on-time performance, and African swallow migratory patterns.
- - - -
in a credit-scoring postnuclear Stone Age...
Moderator Emeritus
fused
Posts: 16,373
Registered: ‎03-12-2007
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Re: you lose 1 point for every percent of your credit limit that you use.



TheNewWorldMan wrote:
 
 African swallow migratory patterns.


Ohhhh boy, you're at it again!:smileytongue:
Credit Profile -
FICO 08 Scores (11-08-2014): EQ 818, EX 817, TU 822
All three scores were 850. Lost points for not having an open installment TL. So, BE WARNED!!!!!
Credit History: 26+ years ~ AAoA: 12 years ~ Util: 1% ~ Inqs: EX 1

Regular Contributor
KevKaos
Posts: 137
Registered: ‎04-20-2007
0

Re: you lose 1 point for every percent of your credit limit that you use.

[ Edited ]


TheNewWorldMan wrote:
, and African swallow migratory patterns.


 

(start really bad Monty Python voice)

 

'ere mate, ow's e able ta hold is FICO scores an a coconut husk in is little claws?
 
(end voice over)


Message Edited by KevKaos on 07-31-2007 12:59 PM
Super Contributor
MidnightVoice
Posts: 8,161
Registered: ‎03-25-2007
0

Re: you lose 1 point for every percent of your credit limit that you use.



KevKaos wrote:


TheNewWorldMan wrote:
, and African swallow migratory patterns.


 

(start really bad Monty Python voice)

 

'ere mate, ow's e able ta hold is FICO scores an a coconut husk in is little claws?
 
(end voice over)


Message Edited by KevKaos on 07-31-2007 12:59 PM

Not bad, not bad.  And that from someone who saw the first ever broadcast of a Python show with one of the Mrs. Pythons   :smileyvery-happy:
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid

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