No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
Hi all, so I know I will be gardening for at least a year, I just opened 6 new accounts I dont know how that will hurt my AAoA either? I had 21 years but I dont know how is that calculated either. I was wondering, do I need to keep the Utilization for the next year? or does it matter really until I have to get a new credit? Like if I can use the card for the next 11 months and then the last month before I get out of garden pay it down to >5%? will I be gardening history? or just the last month? THanks! Will UTILITIZATION has to be a history too?
@Anonymous wrote:Hi all, so I know I will be gardening for at least a year, I just opened 6 new accounts I dont know how that will hurt my AAoA either? I had 21 years but I dont know how is that calculated either. I was wondering, do I need to keep the Utilization for the next year? or does it matter really until I have to get a new credit? Like if I can use the card for the next 11 months and then the last month before I get out of garden pay it down to >5%? will I be gardening history? or just the last month? THanks! Will UTILITIZATION has to be a history too?
The Understanding Fico Scoring forum has some good stuff to read about during your gardening. Quite a few members toy around with their utilization overall and post results. Finding the variables for each profile bascially.
I personally had overall UTL of 6% with 1 card at $972/1000. This dropped my EX score 17 points. Once it reported a $0/1000, overall UTL 4%, EX raised 18points. This is the kind of stuff that's posted overthere.
Total CL: $321.7k | UTL: 2% | AAoA: 7.0yrs | Baddies: 0 | Other: Lease, Loan, *No Mortgage, All Inq's from Jun '20 Car Shopping |
Percent util has no historical memory in scoring, so as long as you get it to the desired level prior to needing/using your score, it wont matter.
However, maintaining high utils over any extended period runs the risk of tripping an internal account review that could lead to a reduction in your credit limit.
That will reduce your denominator, and lead to need to then reduce the numerator (curernt balance) even more in order to achieve the desired % util of less than 10%.
I would suggest setting a normal limit of around 30% in order to remove the chance of a CLD review, and then tweaking to under 10% only when ready to use your score.