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Advice Pls: Utility >10% Need at ALL times?

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Anonymous
Not applicable

Advice Pls: Utility >10% Need at ALL times?

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?

Message 1 of 6
5 REPLIES 5
JustinA
Frequent Contributor

Re: Advice Pls: Utility >10% Need at ALL times?

Don't worry about utilization til you want/need credit. I've found I could leave it at 75+% and when I want an app spree drop it to 8-9% the month prior I'm good. Ymmv but there's no memory so you should be ok

Starting TU: 536
Starting EQ: 573
Goal: 640


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Message 2 of 6
Anonymous
Not applicable

Re: Advice Pls: Utility >10% Need at ALL times?


@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.  

Message 3 of 6
Anonymous
Not applicable

Re: Advice Pls: Utility >10% Need at ALL times?

I have 60% reporting on one 10k card and ZERO reporting on my others giving me a 8% total UTI and my scores are in my siggy.

2.5 years AAOA.
Message 4 of 6
RonM21
Valued Contributor

Re: Advice Pls: Utility >10% Need at ALL times?

There are many threads on how to maintain your utilization. Yes, you can leave it high until an app time comes along then pay it down.

However, I will add that when you leave it like this, you risk any evaluations of your accounts by your lenders being looked at in a negative way during this period. That can also effect potential decisions on auto increases, and how much, as well as increases down the road. Ymmv


Total CL: $321.7kUTL: 2%AAoA: 7.0yrsBaddies: 0Other: Lease, Loan, *No Mortgage, All Inq's from Jun '20 Car Shopping

BoA-55k | NFCU-45k | AMEX-42k | DISC-40.6k | PENFED-38.4k | LOWES-35k | ALLIANT-25k | CITI-15.7k | BARCLAYS-15k | CHASE-10k

Message 5 of 6
RobertEG
Legendary Contributor

Re: Advice Pls: Utility >10% Need at ALL times?

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.

 

Message 6 of 6
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