UTL is 0%, but Only Have $600 Open Credit

[Anonymous]

Hi all, 

I've had a BofA credit card with a $600 limit since I was 18 (27 this month) which has never been increased. Unfortunately, that's the only card I have left as I let 3 others go into default, and they are now Charged Off  

Anyways, I just totally paid off my BofA from about a $400 balance. That will take my UTL from 67% to 0% when it posts, and I know that will improve my score.

But my question is, would my score improve more if I maintained a 0% UTL with a higher dollar amount of Open Credit??? 

Thanks to all who take the time to give their advice!

[Anonymous]

Yes.  The 0% UT will likely lower your score.  Always keep at least 1% on it.  Keep charging & paying.  They will see you are serious.

[Anonymous]

Hi SandiBeach, 

Thanks for getting back. Why 1%?

And what about my question of more open credit amount? Does that factor into a better score?

Thanks again!

[Anonymous]

Anytime I've received a credit limit increase I've seen a slight increase in my credit score. 3 to 8 points

At least 3 bank issued credit cards
all showing a zero balance except for one which reports under 9 % utilization is the optimal way to increase your FICO

No matter the credit limit, a zero balance on all accounts actually hurts your score. 1 card reporting under 9% is best.

I would see about a pfd for the charge offs because they will hurt your credit score for 7 years after dofd.

Effects of high utilization
http://ficoforums.myfico.com/t5/Credit-Cards/Effects-of-High-Utilization/m-p/3957838/highlight/true#...

[Anonymous]

Thanks for the info Jackie!

I am hoping to get another credit card soon, as well as get an increase to my current BofA card. I will definitely enact the 1-9% rule moving forward. Thanks!

I am definitely going to consider PFD with at least one of the charge-offs. I don't have the money to pay all of them, and all but that one have stopped harassing me. I recently moved to NY from FL. In FL I was out of the SOL, but in NY I still have time to go. I wouldn't want to wake a "sleeping dog" with a PFD if I didn't have the money to PIF if they sought legal action...

[Anonymous]

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@Anonymous wrote:

Hi all, 

I've had a BofA credit card with a $600 limit since I was 18 (27 this month) which has never been increased. Unfortunately, that's the only card I have left as I let 3 others go into default, and they are now Charged Off  

Anyways, I just totally paid off my BofA from about a $400 balance. That will take my UTL from 67% to 0% when it posts, and I know that will improve my score.

But my question is, would my score improve more if I maintained a 0% UTL with a higher dollar amount of Open Credit??? 

Thanks to all who take the time to give their advice!

---

Keep in mind, if those charged off cards are still showing a balance from the OC, trying to manage UTI is a lost cause. Those balances will skew your UTI, and you can never get to "optimum". Best you can do is just keep it paid down to save interest. Once you get those charge offs settled THEN you can do the 1-9% balance management.

[Anonymous]

Hey Norman, 

Thanks for the info. I didn't think COs counted towards UTI, only current accounts. I guess that's pretty foolish, huh? Damn. Now I'm discouraged...

All my charged-off accounts aren't showing a balance, besides one...of course, the highest of the lot! Why do some charged-offs don't show a balance while others do???

The DoFD was 4.5 years ago, so I guess only 3 more to go if they keep on reporting a balance...

Also, this account I speak of is reporting as "Open - Collection/Charge-Off" for EQ, but "Closed" for TU. Any idea why? And does it matter either way? Would being reported one way or the other benefit me?

Thanks again everyone!

[Anonymous]

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@Anonymous wrote:

Hey Norman, 

Thanks for the info. I didn't think COs counted towards UTI, only current accounts. I guess that's pretty foolish, huh? Damn. Now I'm discouraged...

All my charged-off accounts aren't showing a balance, besides one...of course, the highest of the lot! Why do some charged-offs don't show a balance while others do???

The DoFD was 4.5 years ago, so I guess only 3 more to go if they keep on reporting a balance...

Also, this account I speak of is reporting as "Open - Collection/Charge-Off" for EQ, but "Closed" for TU. Any idea why? And does it matter either way? Would being reported one way or the other benefit me?

Thanks again everyone!

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usually a balance means the OC still owns it. If they sell it to a JDB then they zero the balance.

[Anonymous]

Ahhh, I see. Very useful information. 

Why won't they sell it already?! It's been 4.5 years!!! Geeze!