05-20-2012 07:02 PM
06-08-2012 03:53 PM
I've heard that there are various thresholds that report different numbers but that is only hearsay and I don't have any empirical evidence. But the numbers I've heard about are 50%, 35% and 10% with the 35% threshold being the most important according to popular advice. When getting below each threshold you supposedly get a better score. This works for both individual credit card utilization and aggregate credit card utilization.
However, I recently came across a table at CreditKarma that suggest there are no thresholds at all but rather a gradual scoring improvement as you lower your utilization.
As you can see by the graph there is a drop at the 0% utilization -- that is an anomaly because it may be reporting people without a CC at all and those people probably have a lower score period. For the most part, a utilization below 10% on individual and aggregate revolving credit seems to yield the best score results.
Best wishes on credit score increase.
06-09-2012 02:32 AM
Going from 11% to 9% is kinda academic, as the scoring of % util is based only on current util, and retains no historical memory.
Sure, it might help a few points next month, but the key issue is what your % uti is when you make an app for credit, and are thus actually using your score.
My primary concern would be with whatever is currently keeping your score below 600, and with 11% util, that is not the reason.
Are the 90 and 120 late the only derogs in your CR? If so, you should see a good bump with their deletion. However, if other major derogs remain, it is not likely to be fantastic.
10-09-2012 06:50 AM
"Split post to form a new thread within "Rebuilding Your Credit".
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO