@Anonymous wrote:
Didn't think of that. The QS has the highest SL of my 3 cards, so I was thinking util%. But my util% is 2-3%, so I guess nothing to worry about?
Some folks with 3% aggregate utilization have a lot to worry about but since all of the fake credit simulators only focus on aggregate utilization, they don't realize it.
Aggregate utilization matters a lot but FICO also looks at individual card utilization for scoring purposes. So even if a person has just 3% aggregate utilization (say they report $300 balance total on $10,000 in total limits), they may still get dinged if all of that utilization is on one low limit card ($300/$500 = 60% utilization on one card).
I never suggest apping for cards just for aggregate utilization purposes: anyone who does this is already in over their head because they're playing the fresh debt game and typically instead of lowing overall utilization, they end up charging up the new card!
In terms of rebuilding, it's always better for a new card to first report as late as possible because it helps it age with less of a new account penalty for sure. One reason I liked getting in with Amex in November is that I didn't have to worry about playing the utilization game until the second statement cut date! I used that to maximize my interest rate return on my credit card payments account.
That being said, with some lenders you just will never know when they report. I have a zero interest boat loan reporting that I just want to pay to $0 but I am letting it report so I can see the effects of installment utilization -- but the stupid bank reports the balance due from 3 months ago! Very frustrating.
Some lenders may even do that: you'll have just ONE MONTH where you accidentally report 80% utilization but paid it off to $0 but the lender may take 2-3 months to actually report the new balance.
Don't hassle the lender about it unless you go 3 statements + 15 days since last update (or first update). Then there's an obvious problem somewhere, but front line CSRs won't be able to help you. In those cases, a letter to underwriting or the executive office is warranted.
