Utilization and score

[Anonymous]

I got a US Bank secured CC for $300. I had a utilization of 78% reported the first month (January). Score is at 615 with EQ(Up from 596 before I opened the card). I paid it down to 20% utilization. Their score simulator states it should be about 662 to 682 with the utilization at the current 20%. 

My question is: Is the utilization rate on a 300 limit secured card really that big of an impact on my score? If so then this card has taken me from about 596 to ~660. I'm hoping to get this Cap One unsecured card that they are requesting identification for. Would be the first significant reward from rebuilding my credit as I was at 495 not even a year ago. A mortgage is so close I can almost taste the bottle of wine for the house warming party!

[Anonymous]

When credit scores are in the lower end of the spectrum, the increases tend to be more notable and are more easily influenced by utilization and on time payments. The size of the card isn't important in this matter. Utilization is 30% of your credit score and going from 78% to 20% is a huge jump, which in turn can lead to a huge increase in score. Last year I went from 97% utilization to 2% in about 5 months and gained more than 100 points in the process including having judgments and collections and chargeoffs removed. Been in the 730s since last September. Haven't cracked 740 yet.

[Anonymous]

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@Anonymous wrote:

I got a US Bank secured CC for $300. I had a utilization of 78% reported the first month (January). Score is at 615 with EQ(Up from 596 before I opened the card). I paid it down to 20% utilization. Their score simulator states it should be about 662 to 682 with the utilization at the current 20%. 

My question is: Is the utilization rate on a 300 limit secured card really that big of an impact on my score? If so then this card has taken me from about 596 to ~660. I'm hoping to get this Cap One unsecured card that they are requesting identification for. Would be the first significant reward from rebuilding my credit as I was at 495 not even a year ago. A mortgage is so close I can almost taste the bottle of wine for the house warming party!

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Where are you getting your scores from?

[Anonymous]

Another suggestion -

If you dont have three revolving accounts, that will suppress your scores too.

Each time I opened one of my first three CCs, I would get a score bump of at least 10 to 20 points.  Some were just 250 CLI and none of them over 1000.

The scoring system responds best if you have the UTI on all CCs under 10%, with a penalty for having one CC over 10 and also all CCs combined over 10.  Your best chance for the highest score would be all CCs report at zero and just one CC report at less than 10%.

I believe other threshold points are at under 30% and then under 50%.

GL