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Result of reducing util from 42% to 0%

Valued Contributor

Result of reducing util from 42% to 0%

I paid down my credit card which took my total utilization from 42% to 0% and saw a boost of +12 points on my Equifax FICO score. That was the only change. Now sitting at 674. Smiley Happy

Message 1 of 14
13 REPLIES
Established Contributor

Re: Result of reducing util from 42% to 0%

Great job!

Fico: 701 (5/22/14) 682 (5/9/2014)
Discover IT $5,200 / CU Visa $1,000 / JC Penny$3,000
App Free since 2/2013
Message 2 of 14
Established Contributor

Re: Result of reducing util from 42% to 0%

Awesome Congrats Smiley Very Happy


Starting Score: 377EQ/350EX/400TU As of 11/2011
Current Score: 620EQ/614EX/612TU As of 01/2013
Goal Score: 700+ across the boards
Message 3 of 14
Valued Contributor

Re: Result of reducing util from 42% to 0%

That's great.  I'm sitting at the exact same utilzation now, 42% of $20K  available credit.  

I paid it down to 3-4% 3 wks ago and am waiting for the updated CR's next week.

I'm hoping for a 20 pt boost, but I'll take 16 pts to get to the EQ 720 club.

 

Good job!  DCU here we come!!

Message 4 of 14
Highlighted
New Contributor

Re: Result of reducing util from 42% to 0%

Ive heard that 1-9% is actually better per the fico scoring model then 0%...i would be curious if you charged something and left the percentage at 1-9 if it would actually go up


Starting Score: EQ 575 EX 595 TR 524
Current Score: EQ 643 EX ??? TR 638
Goal Score: EQ 300 EX 300 TR 300


Take the myFICO Fitness Challenge
Message 5 of 14
Valued Contributor

Re: Result of reducing util from 42% to 0%


tmobileguy wrote:

Ive heard that 1-9% is actually better per the fico scoring model then 0%...i would be curious if you charged something and left the percentage at 1-9 if it would actually go up


I have the MyFico Score Watch so I'll tinker with it next month and get it to 5% util and see what that does to the score.

Message 6 of 14
Valued Contributor

Re: Result of reducing util from 42% to 0%

I dropped 7 pts on EQ after I purposely kept a $32 balance showing on my $700 Walmart account.

Not sure if showing a small balance is good or bad?

Message 7 of 14
Valued Contributor

Re: Result of reducing util from 42% to 0%

I'm itching to buy another TransUnion FICO score as the util has updated with TU now as well accoring to the free Transunion.com trial I have going...curious to see how dropping the util affected that score. It was 668 three days ago. Worth the $20 for a new score?

Message 8 of 14
Valued Contributor

Re: Result of reducing util from 42% to 0%

Mike - Once my SW EQ updated here wth my new accounts showing, I had to buy the TU report on myFico.

I couldn't take it anymore.  Unfortunately, my TU dropped 23 whereas my EQ went up21 and then back down 12.  But still, a 32 pt swing in the opposite directions between EQ and TU.  Go figure?

 

Most will tell you it's not worth it, but I say do it.  If a few bucks is the cost of learning and seeing how your score reacts to different circumstances, I say it's worth it. 

Message 9 of 14
Valued Contributor

Re: Result of reducing util from 42% to 0%


tmobileguy wrote:

Ive heard that 1-9% is actually better per the fico scoring model then 0%...i would be curious if you charged something and left the percentage at 1-9 if it would actually go up


Depending on overall makeup, bucket ect ect.. you are pretty accurate..

 

My scores are always 6 to 8 pts higher around the board carrying 3 percent total... 0 balances on all cards but one, and 9 percent on that one card..

 

My scores were all higher than they were with 0 balances around the board, but minimal. The logic is, FICO is a predictor of future on time payments and default probablity... if you dont have usage of revovling, it feels it doesn't have enough solid data to gauge and dings yer score a little; since FICO is just a current snapshot. If your current snapshot shows no usage, it has a harder time with its math... minimal really.

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession


Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX
Message 10 of 14