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Card Utilization

tag
Regular Contributor

Card Utilization

I'm working on getting my FICO to 750 before applying for a mortgage so I can get the best rate and also paying down credit card debt (which I know they coincide).  To improve my FICO score, is it best to pay down EACH card to 10% or lower or is it calculated overall?  Does a mortgage lender look at it from both angles in addition to DTI or do they only care about DTI?

 

I have 3 cards that on average 40% utilization amongst those 3, but overall I have 23% utilization.


Starting Score: 703
Current Score: 7/8/10: TU - 738 EQ - 750
Previous Score: 1/22/10: TU - 703 EQ - 714
Goal Score: 750


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Anonymous
Not applicable

Re: Card Utilization

you want all cards reporting under 9% utilization for best score.  Ideally you would pay them all off except1 and leave a small balance on just 1 or 2.

 

Lender only cares about DTI as far as approval goes and credit card balances.

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